12.66 Income and education in Florida The FL Crime data file on the book’s website contains data for all counties in Florida on y = median annual income (thousands of dollars)

for residents of the county and x = percentage of residents with at least a high school education. The table shows some summary statistics and results of a regression analysis.

a. Find the correlation r. Interpret (i) the sign and (ii) the magnitude.

b. Find the predicted median income for a county that is 1 standard deviation above the mean on x and use it to explain the concept of regression toward the mean.

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Income and Education for Florida Counties Varlable Mean Std Dev Predictor INCOME 24.51 4.69 Parameter Estimate INTERCEPT -4.60 EDUC 69.49 8.86 EDUC 0.42