Table 2-8 gives data on weekly family consumption expenditure (Y) (in dollars) and weekly family income (X) (in dollars).
HYPOTHETICAL DATA ON WEEKLY CONSUMPTION
EXPENDITURE AND WEEKLY INCOME

a. For each income level, compute the mean consumption expenditure, E(Y | Xi), that is, the conditional expected value.
b. Plot these data in a scatter gram with income on the horizontal axis and consumption expenditure on the vertical axis.
c. Plot the conditional means derived in part (a) in the same scatter gram created in part (b).
d. What can you say about the relationship between Y and X and between mean Y and X?
e. Write down the PRF and the SRF for this example.
f. Is the PRF linear or nonlinear?

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Weekly income Weekly consumption expenditure (S(x) 80 100 120 140 160 180 200 220 240 260 55, 60, 65, 70, 75 65, 70, 74, 80, 85, 88 79, 84, 90, 94, 98 80, 93, 95, 103, 108, 113, 115 102, 107, 110, 116, 118, 125 110, 115, 120, 130, 135, 140 120, 136, 140, 144, 145 135, 137, 140, 152, 157, 160, 162 137, 145, 155, 165, 175, 189 150, 152, 175, 178, 180, 185, 191