The Conference Board produces a Consumer Confidence Index (CCI) that reflects people’s feelings about general business conditions, employment opportunities, and their own income prospects. Some researchers may feel that consumer confidence is a function of the median household income. Shown here are the CCIs for nine years and the median household incomes for the same nine years published by the U.S. Census Bureau. Determine the equation of the regression line to predict the CCI from the median household income. Compute the standard error of the estimate for this model. Compute the value of r2.Does median household income appear to be a good predictor of the CCI? Why or why not?
CCI Median ... Household Income ($1,000)
116.8 ..... 37.415
91.5 ..... 36.770
68.5 ..... 35.501
61.6 ..... 35.047
65.9 ..... 34.700
90.6 ..... 34.942
100.0 ..... 35.887
104.6 ..... 36.306
125.4 ..... 37.005