# The homeownership rate in the United States was 67.4% in 2009. In order to determine if homeownership

## Question:

The homeownership rate in the United States was 67.4% in 2009. In order to determine if homeownership is linked with income, 2009 state level data on the homeownership rate (Ownership) and median household income (Income) were collected. A portion of the data is shown below; the entire data set, labeled Home_Ownership, can be found on the text website.

a. Estimate: Ownership = Î²0 + Î²1Income + .

b. At the 5% significance level, is Income linearly related to Ownership?

c. Construct a 95% confidence interval for the expected value of Ownership if Income is $50,000.

d. Compare the above confidence interval with a 95% prediction interval forOwnership.

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**Related Book For**

## Essentials Of Business Statistics Communicating With Numbers

**ISBN:** 9780078020544

1st Edition

**Authors:** Sanjiv Jaggia, Alison Kelly