FILE The homeownership rate in the U.S. was 67.4% 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. A portion of the data is shown below; the complete data can be found on the text website, labeled Home Ownership.

State Income Ownership Alabama $39,980 74.1%

Alaska $61,604 66.8%

Wyoming $52,470 73.8%

Source: w w w .c e n s u s .g o v .

a. E stim ate and in te rp re t th e m o d e l: O w n e rsh ip = β 0 +

β1,In co m e + ε .

b. W h a t is th e stan dard e rro r o f th e estim ate? C alculate and in te rp re t

c. In te rp re t th e c o e ffic ie n t o f d e te rm in a tio n .