Question: Estimate: Debt = 0 + 1Income + , where Debt is the average debt payments for a household in a particular city (in $) and

Estimate: Debt = β0 + β1Income + ε, where Debt is the average debt payments for a household in a particular city (in $) and Income is the city's median income (in $1,000s).

a. Construct the 95% confidence interval for expected debt payments if income is $80,000.

b. Construct the 95% prediction interval for debt payments if income is $80,000.

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Using y for Debt and x for Income the estimated model is y210301044x a First we need to derive y 0 a... View full answer

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