1.Your two variables are consumption and income. Which is the dependent variable and which is the independent variable?

2.You have the following data on consumption and income (in $10,000s). Make a scatterplot.

Income

9

11

5

8

2

9

12

Consumption

7

7

2

7

2

8

9

3.Draw your best guess for a line of best fit in your scatterplot above.

a.Guess the slope.

b.Guess the intercept.

c.Do consumption and income appear to have a high, moderate, or low correlation?