(1)Bivariate regression.Agresti & Finlay p. 289, problem 9.4 (4 points; 2 points for each answer)

The OECD (Organization for Economic Cooperation and Development) consists of 20 advanced, industrialized countries. For these nations, the prediction equation relating y = child poverty rate in 2000 to x = social expenditure as a percent of gross domestic product is = 22 - 1.3x. The y-values ranged from 2.8% (Finland) to 21.9% (U.S.). The x-values ranged from 2% (U.S.) to 16% (Denmark).

(a)Interpret the y-intercept and the slope.

(b)Find the predicted poverty rates for the U.S. and for Denmark.