Personal wealth tends to increase with age as older individuals have had more opportunities to earn and invest than younger individuals. The following data were obtained from a random sample of eight individuals and records their total wealth (Y) and their current age (X).

Person TOTAL WEALTH('000s of dollars) Age(years)

A 280 36

B 450 72

C 250 48

D 320 51

E 470 80

F 250 40

G 330 55

H 430 72

A part of the output of a regression analysis of Y against X using Excel is given below: SUMMARY OUTPUT

Regression Statistics

Multiple R 0.954704

R Square 0.91146

Adjusted R Square 0.896703

Standard Error 28.98954

Observations 8

ANOVA

df ss MS F significance F

Regression 1 51907.64 51907.64

Residual 6 5042.361 840.3936

Total 7 56950

Coefficients standard Error t stat p-value

intercept 45.2159 39.8049

Age 5.3265 0.6777

Requirements

1. statethe estimated regression line and interpret the slope coefficient.
2. What is the estimated total personal wealth when a person is 50 years old?

3. What is the value of the coefficient of determination? Interpret it.

4 Test whether there is a significant relationship between wealth and age at the 10%

significance level. Perform the test using the following six steps.

Step 1. Statement of the hypotheses

Step 2. Standardised test statistic

Step 3. Level of significance

Step 4. Decision Rule