The homeownership rate in the U.S. was 64.4% in 2009. In order to determine if homeownership is linked with income, 2009 state-level data on the homeownership rate (Ownership in %) and median household income (Income in $) were collected. A portion of the data is shown in the accompanying table.
State | Ownership | Income |
Alabama | 70.4 | 37990 |
Alaska | 64.6 | 59614 |
Arizona | 65.9 | 43749 |
Arkansas | 64.8 | 34548 |
California | 55.0 | 54144 |
Colorado | 66.0 | 53940 |
Connecticut | 68.3 | 62861 |
Delaware | 73.6 | 50124 |
District of Columbia | 43.2 | 51151 |
Florida | 67.8 | 43641 |
Georgia | 64.3 | 41350 |
Hawaii | 57.4 | 53659 |
Idaho | 72.3 | 44788 |
Illinois | 66.5 | 50880 |
Indiana | 68.8 | 42315 |
Iowa | 69.6 | 48731 |
Kansas | 64.4 | 42727 |
Kentucky | 67.9 | 40674 |
Louisiana | 68.8 | 43443 |
Maine | 70.9 | 45512 |
Maryland | 67.4 | 62196 |
Massachusetts | 62.9 | 57383 |
Michigan | 71.3 | 44004 |
Minnesota | 70.3 | 54100 |
Mississippi | 71.2 | 33088 |
Missouri | 69.1 | 46779 |
Montana | 67.2 | 38447 |
Nebraska | 67.4 | 47605 |
Nevada | 60.0 | 49444 |
New Hampshire | 73.6 | 62141 |
New Jersey | 63.9 | 62787 |
New Mexico | 65.9 | 41552 |
New York | 52.2 | 48226 |
North Carolina | 66.8 | 39916 |
North Dakota | 63.1 | 48085 |
Ohio | 66.7 | 43889 |
Oklahoma | 66.6 | 43888 |
Oregon | 65.4 | 47108 |
Pennsylvania | 69.2 | 46182 |
Rhode Island | 60.5 | 49644 |
South Carolina | 70.8 | 39111 |
South Dakota | 66.6 | 43836 |
Tennessee | 67.6 | 38527 |
Texas | 62.7 | 45485 |
Utah | 71.6 | 56501 |
Vermont | 71.5 | 50328 |
Virginia | 67.4 | 58511 |
Washington | 63.3 | 58402 |
West Virginia | 74.8 | 38500 |
Wisconsin | 67.7 | 49247 |
Wyoming | 71.0 | 50480 |
a-1. Estimate the model Ownership =
β0 + β1Income + ε.
(Negative values should be indicated by a minus sign. Round
your answers to 4 decimal places.) [If you are using R to obtain
the output, then first enter the following command at the prompt:
options(scipen=10). This will ensure that the output is not in
scientific notation.]
yˆy^ = _______ + _______ Income |
b. What is the standard error of the estimate? (Round your answer to 2 decimal places.)
The statistic software output for this problem is:
= 72.7089 - 0.0001 Income
b) Standard error = 5.53
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