Consider the following estimated equation using a sample of 509 individuals: exp=2.27 +0.024inc, n = 509,...

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Consider the following estimated equation using a sample of 509 individuals: exp=2.27 +0.024inc, n = 509, SSR = 4103.68, SST = 4210.66, where erp is the annual medical expenditure in hundreds of dollars, and inc is annual income in thousands of dollars. (Comment: Please pay attention to the units of measurement when you answer the following questions.) (a) Interpret the estimated coefficient on inc and the intercept. (b) To predict an expenditure of $400, what would income have to be? Show your work. (c) Compute the R-squared and interpret its meaning. (d) Suppose now we want to measure both income and expenditure in hundreds of dollars. How would the estimated intercept and slope parameter change? What about R²? Consider the following estimated equation using a sample of 509 individuals: exp=2.27 +0.024inc, n = 509, SSR = 4103.68, SST = 4210.66, where erp is the annual medical expenditure in hundreds of dollars, and inc is annual income in thousands of dollars. (Comment: Please pay attention to the units of measurement when you answer the following questions.) (a) Interpret the estimated coefficient on inc and the intercept. (b) To predict an expenditure of $400, what would income have to be? Show your work. (c) Compute the R-squared and interpret its meaning. (d) Suppose now we want to measure both income and expenditure in hundreds of dollars. How would the estimated intercept and slope parameter change? What about R²?