Question: A consumers spending is widely believed to be a function of their income. A university professor tries to estimate this relationship by measuring his students

A consumer’s spending is widely believed to be a function of their income. A university professor tries to estimate this relationship by measuring his students’ spending and income patterns in week 6 of the semester

a. Construct a scatter diagram.

b. Assuming a linear relationship, use the least-squares method to find the regression coefficients, b0 and b1.

c. Interpret the meaning of the slope, b1, in this problem.

d. Predict the mean spending for a student with a weekly income of $225.

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