Question

The homeownership rate in the U.S. was 64.4% in 2009. In order to determine if homeownership...

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.)

Homework Answers

Answer #1


The statistic software output for this problem is:

=  72.7089 - 0.0001 Income

b) Standard error = 5.53

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