Download the file “Census_Data_Selected_socioeconomic_indicators_ in_Chicago_2008_2012” with data from 77 communities in Chicago. Using statistical software, we will assess if percent of Housing Crowded (PCNT_H_C) helps predict per capita income (INC). Statistical inference will be conducted at 1% significance. Note that last row in the data set is for all of Chicago and thus must be deleted for the analysis.
a) Construct a scatterplot. Interpret.
b) Perform inference on significance of the model. Interpret.
c) Interpret R².
d) Find the correlation coefficient and interpret.
e) Construct histogram of significant model residuals. Discuss what it checks and how it looks.
f) Construct a plot of per capita income versus its model-predicted value. Discuss what it checks and how it looks.