Let the variable Y indicate the per capita expenditure ( in USD) on public schools and the variable X indicate the per capita income (in USD) by districts of a country for a particular year. The following information is given

Total Sum of Squares (TSS) = 78670.857 and Residual Sum of Squares (ESS) = 16485.243 Requirements:
[i] Obtain the regression equation of expenditure on income; i i i Y = ????+????X +???? , and comment on your obtained results.

[ii] Obtain the ˆ var(????) and hence the standard error of ˆ
????
.
[iii] Calculate R2 and comment on your obtained result.
[iv] Test the null hypothesis 0 H : ???? = 0, , against the alternative hypothesis 1 H : ???? ???? 0, at ???? = 5%.
[v] What is the elasticity of expenditure for schooling with respect to income in the country? Comment on your result.
[vi] Calculate the 95% confidence interval for ????.

14 14 14 Y = 4848; X=101267; XY = 35928869, and X=744436813 i-l i=1 i=1 i=1