Rooms per person. Both personal earnings and favorable living conditions contribute to a person’s well-being. The number of rooms per person is one of the indicators of living conditions. To secure a spacious house for oneself, adequate personal earnings are required. These two variables thus won’t be unrelated. The OECD has collected data (in the OECD 2020 data file) on personal earnings and number of rooms per person for the 37 OECD member countries and omitted the countries without data which left 27 data.

a) Make a scatterplot relating the number of rooms per person to personal earnings.

b) Describe the association between the two variables.

c) Do you think a linear model is appropriate?

d) Computer software says that R2 = 35.14%. What is the correlation between number of rooms per person and personals earnings?

e) Explain the meaning of R2 in this context.

f) Why doesn’t this model explain 100% of the variability in the number of rooms per person?