Question: In Problem 15 from Section 4.1, a scatter diagram and correlation coefficient suggested there is a linear relation between the percentage of individuals who have

In Problem 15 from Section 4.1, a scatter diagram and correlation coefficient suggested there is a linear relation between the percentage of individuals who have at least a bachelor's degree and median income in the states. In fact, the least-squares regression equation is yÌ‚ = 703.5x + 14,920 where y is the median income and x is the percentage of individuals 25 years and older with at least a bachelor's degree in the state.

(a) Predict the median income of a state in which 25% of adults 25 years and older have at least a bachelor's degree.
(b) In North Dakota, 27.1 percent of adults 25 years and older have at least a bachelor's degree. The median income in North Dakota is $37,193. Is this income higher than what you would expect? Why?
(c) Interpret the slope.
(d) Explain why it does not make sense to interpret the intercept.

Percent of Population with At Least a Bachelor's Degree vs. Median Income 55000 50000 45000 40000 35000 30000 50 Bachelors % Median Income

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