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A bank is interested in finding out how income affects savings. We assume that yearly savings Y in NOK for a worker when the income
A bank is interested in finding out how income affects savings. We assume that yearly savings Y in NOK for a worker when the income is x NOK is a normally distributed stochastic variable with an expectation E(Y) = ?0 + ?1x and a standard deviation of 600. The bank examines 5 random observation pairs and finds the following:
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