The homeownership rate in the U.S. was 63.9% in 2009. In order to determine if homeownership is linked with income, 2009 state level data on homeownership rate (Ownership) and median household income (Income) were collected. The data is shown in the accompanying table.
State Income Ownership
Alabama $37,650 69.8%
Alaska $59,274 64.3%
Arizona $43,409 65.4%
Arkansas $34,208 64.1%
California $53,804 54.6%
Colorado $53,600 65.6%
Connecticut $62,521 68.0%
Delaware $49,784 73.1%
District of Columbia $50,811 42.9%
Florida $43,301 67.3%
Georgia $41,010 63.8%
Hawaii $53,319 57.0%
Idaho $44,448 71.7%
Illinois $50,540 66.1%
Indiana $41,975 68.2%
Iowa $48,391 69.1%
Kansas $42,387 63.9%
Kentucky $40,334 67.3%
Louisiana $43,103 68.2%
Maine $45,172 70.4%
Maryland $61,856 67.1%
Massachusetts $57,043 62.5%
Michigan $43,664 70.7%
Minnesota $53,760 69.9%
Mississippi $32,748 70.5%
Missouri $46,439 68.6%
Montana $38,107 66.6%
Nebraska $47,265 66.9%
Nevada $49,104 59.6%
New Hampshire $61,801 73.2%
New Jersey $62,447 63.5%
New Mexico $41,212 65.4%
New York $47,886 51.9%
North Carolina $39,576 66.2%
North Dakota $47,745 62.6%
Ohio $43,549 66.2%
Oklahoma $43,548 66.1%
Oregon $46,768 65.0%
Pennsylvania $45,842 68.7%
Rhode Island $49,304 60.1%
South Carolina $38,771 70.2%
South Dakota $43,496 66.1%
Tennessee $38,187 67.0%
Texas $45,145 62.2%
Utah $56,161 71.1%
Vermont $49,988 71.0%
Virginia $58,171 67.0%
Washington $58,062 63.0%
West Virginia $38,160 74.2%
Wisconsin $48,907 67.2%
Wyoming $50,140 70.5%
Picture Click here for the Excel Data File
a-1. Estimate the model: Ownership = β0 + β1Income + ε. (Negative values should be indicated by minus sign. Round your answers to 4 decimal places.)
formula349.mml _________ + ____________ income
a-2. Interpret the model.
For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.1%.
For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.01%.
For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.001%.
For a $1Picture000 increase in incomePicture homeownership rate is predicted to decrease by 0.0001%.
b. What is the standard error of the estimate? (Round your answer to 2 decimal places.) se __________
c. Interpret the coefficient of determination.
- 2.68% of the sample variation in y is explained by the estimated regression equation.
- 2.68% of the sample variation in x is explained by the estimated regression equation.
- 3.68% of the sample variation in x is explained by the estimated regression equation.
- 1.68% of the sample variation in y is explained by the estimated regression equation.