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Table 1 shows the total consumption (Y, in billions) and disposable income (X, in billions) for Kumandra, the rich land. 1. Draw a scatter plot
Table 1 shows the total consumption (Y, in billions) and disposable income (X, in billions) for Kumandra, the rich land.
1. Draw a scatter plot for the data and see if there is an approximate linear relationship between Y and X by inspecting it. Draw a straight line connecting the plotted numbers as closely as possible.
2. Can we use this data for a linear regression model? Why?
3. State the general relationship between Y and disposable X in: a. exact linear form b. stochastic form.
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