The following table gives information on the incomes (in thousands of dollars) and charitable contributions (in hundreds of dollars) for the last year for a random sample of 10 households in California.

Income (x) 76 57 140 97 75 107 65 77 102 53

Charitable Contributions (y) 15 4 42 33 5 32 10 18 28 4

1. Determine the regression equation. Show your work to get full credit.

2. Interpret the coefficients (i.e., a and b) of the regression equation.

3. Calculate the predicted amount of charitable contribution if a household income is 250 (i.e., 250*1000 =

$250,000)

4. Calculate and interpret the coefficient of determination.

5. Test at a 1% significance level whether there is relationship (or not) between income and charitable

contributions. Conduct a two-tail test.