=+45. Cost index again. In Exercise 43, we examined the Worldwide Cost of Living Survey cost of living index for the ten most expensive cities, whose 2011 indices range from Singapore’s 137 to Tokyo’s 161. Let’s add the ten least expensive cities to the data. Their 2011 indices range from 46 for Karachi (the least expensive city in 2011) to Dhaka and Manila at 62. Here is the resulting regression:

Dependent variable is: Index 2011 R-squared = 99.3%

s = 4.061 with 20 - 2 = 18 degrees of freedom Predictor Coeff SE(Coeff) t-Ratio P-Value Intercept -2.6787 2.272 -1.18 0.2537 Index 2010 1.1082 0.022 50.1 60.0001