Answer the following questions using EmployedACS, a subset of ACS that only includes people who are employed.

(a) Construct a graph to visualize the relationship between HoursWk and Income. Comment on what you see.

(b) Is there a significant positive association between hours worked per week and yearly income?

(c) Fit a regression model regressing Income on HoursWk. What is the fitted prediction equation?

(d) What is the predicted salary for someone who typically works a 40-hour work week?

(e) How much of the variability in yearly income is explained by the number of hours worked per week?

(f) Are the conditions met for performing inference based on this regression model?

The American Community Survey, administered by the US Census Bureau, is given every year to a random sample of about 3.5 million households (about 3% of all US households). It has been crucial for government and policy decisions, and helps to determine how over 400 billion dollars of government funds are distributed each year. Unfortunately, the House voted in May 2012 to eliminate this valuable source of information. Data on a random sample of 1% of all US residents are made public (after ensuring anonymity), and we have selected a random sub-sample of n = 1000 from the 2010 data, stored in ACS.