Retirement. A researcher is interested in knowing how much a person would need to save for retirement by the age of 30, 40, 50, and beyond. He collects a survey from a group of people between the age of 30 to 60 years and determines the retirement savings (in $ thousand) on the basis of each individual’s need if they plan to retire at their age.

a) Compute a regression of retirement savings by age.

State the null and alternative hypotheses associated with this regression.

b) Are the assumptions for regression satisfied?

c) What would you write to the researcher regarding this analysis?