The pictures are the SAS output please answer the following questions using the

Question

The pictures are the SAS output please answer the following questions using the output:
a) what is the least squares equation? b) what percentage of variation in CONS has been explained by the regression c) construct a 95% confidence interval for B1 d) conduct a test to determine if B1 is significant at .05 level of significance. Use two methods p and t value e) find the estimated standard error f) find the predicted value of CONS for INCOME =3500 g) construct a 95% confidence interval for the mean value of CONS for INCOME =3500 f) construct a 95% confidence interval for a new observation of CONS for INCOME =3500 HSAS Output.htmDX36.mht The SAS System Obs income cons 116000 14000 2 30000 24545 3 43000 36776 4 70000 63254 5 56000 40176 6 50000 49548 7 16000 16000 8 26000 22386 9 14000 16032 10 12000 12000 11 24000 20768 12 30000 34780 The SAS System The UNIVARIATE Procedure Variable: income Moments 12 Sum Weights Mean Std Deviation 18606.5726 Variance Skewness 0.85073162 Kurtosis 12 32250 Sum Observations 387000 346204545 0.2386888 Uncorrected SS 1.6289E10 Corrected SS 3808250000 Coeff Variation 57.6947989 Std Error Mean 5371.25486 Basic Statistical Measures Variability Location Mean 32250.00 Std Deviation Median 28000.00 Variance Mode 16000.00 Range 18607 346204545 58000 Interquartile Range 30500 Note: The mode displayed is the smallest of 2 modes with a count of 2

Explanation / Answer

SolutionA:

least squares eq is

CONS=2521.37891+0.82690(INCOME)

slope of regression line=0.82690

y intercept=2521.37891

Solutionb:

From the output:

R sq=0.9312

.09312*100=93.12% variation iCONS is explained by model.

good model

Solutionc:

95% confidence interval for B1 is

0.66847 to 0.98532

Solutiond:

Null hypothesis:

Ho:slope of a regression line =0

Alternative Hypothesis:

H1:slope of a regression line not equal to 0

t=11.63

p<0.0001

p<0.05
Reject Null hypothesis.
Accept Alternative Hypothesis.

e) find the estimated standard error

RMSE=4387.72164

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