Fifteen mid-western and mountain states have united in an effort to promote and forecast tourism. One aspect

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Fifteen mid-western and mountain states have united in an effort to promote and forecast tourism. One aspect of their work has been related to the dollar amount spent per year on domestic travel (DTE) in each state. They have the following estimates for disposable personal income per capita (DPI) and DTE:

State

DPI

DTE ($Millions)

Minnesota

$17,907

$4,933

Iowa

15,782

1,766

Missouri

17,158

4,692

North Dakota

15,688

628

South Dakota

15,981

551

Nebraska

17,416

1,250

Kansas

17,635

1,729

Montana

15,128

725

Idaho

15,974

934

Wyoming

17,504

778

Colorado

18,628

4,628

New Mexico

14,587

1,724

Arizona

15,921

3,836

Utah

14,066

1,757

Nevada

19,781

6,455

a. From these data, estimate a bivariate linear regression equation for domestic travel expenditures (DTE) as a function of disposable income per capita (DPI):

b. Illinois, a bordering state, has asked that this model be used to forecast DTE for Illinois under the assumption that DPI will be $19,648.

c. Given that actual DTE turned out to be $7,754 (million), calculate the percentage error in your forecast.

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