The homeownership rate in the U.S. was 60.9% in 2009. In order to determine if h

Question

The homeownership rate in the U.S. was 60.9% in 2009. In order to determine if homeownership is linked with income, 2009 state level data on homeownership rate (Ownership) and median household income (Income) were collected. The data is shown below.

State       

   Income

      Ownership

  Alabama

$35,670   

66.1%    

  Alaska

$57,294   

62.1%    

  Arizona

$41,429   

62.4%    

  Arkansas

$32,228   

60.4%    

  California

$51,824   

52.6%    

  Colorado

$51,620   

63.1%    

  Connecticut

$60,541   

65.8%    

  Delaware

$47,804   

70.2%    

  District of Columbia

$48,831   

41.3%    

  Florida

$41,321   

64.2%    

  Georgia

$39,030   

60.7%    

  Hawaii

$51,339   

54.9%    

  Idaho

$42,468   

68.5%    

  Illinois

$48,560   

63.5%    

  Indiana

$39,995   

65.0%    

  Iowa

$46,411   

66.2%    

  Kansas

$40,407   

60.9%    

  Kentucky

$38,354   

64.0%    

  Louisiana

$41,123   

65.1%    

  Maine

$43,192   

67.3%    

  Maryland

$59,876   

64.9%    

  Massachusetts

$55,063   

60.4%    

  Michigan

$41,684   

67.5%    

  Minnesota

$51,780   

67.3%    

  Mississippi

$30,768   

66.2%    

  Missouri

$44,459   

65.6%    

  Montana

$36,127   

63.2%    

  Nebraska

$45,285   

64.1%    

  Nevada

$47,124   

57.2%    

  New Hampshire

$59,821   

70.9%    

  New Jersey

$60,467   

61.5%    

  New Mexico

$39,232   

62.3%    

  New York

$45,906   

49.7%    

  North Carolina

$37,596   

62.9%    

  North Dakota

$45,765   

60.0%    

  Ohio

$41,569   

63.2%    

  Oklahoma

$41,568   

63.1%    

  Oregon

$44,788   

62.2%    

  Pennsylvania

$43,862   

65.7%    

  Rhode Island

$47,324   

57.6%    

  South Carolina

$36,791   

66.6%    

  South Dakota

$41,516   

63.1%    

  Tennessee

$36,207   

63.5%    

  Texas

$43,165   

59.5%    

  Utah

$54,181   

68.6%    

  Vermont

$48,008   

68.2%    

  Virginia

$56,191   

64.7%    

  Washington

$56,082   

60.8%    

  West Virginia

$36,180   

70.3%    

  Wisconsin

$46,927   

64.5%    

  Wyoming

$48,160   

67.7%    

Estimate the model: Ownership = 0 + 1Income + . (Negative values should be indicated by minus sign. Round your answers to 4 decimal places.)

The homeownership rate in the U.S. was 60.9% in 2009. In order to determine if homeownership is linked with income, 2009 state level data on homeownership rate (Ownership) and median household income (Income) were collected. The data is shown below.

Explanation / Answer

here b1=Sxy/(Sxx*Syy) 1/2 =(-1586.941)/(0.1360*2809747402.98)1/2 =-0.000000566

and b0=Ybar-b1*Xbar =0.657

hence yhat=(0.656568-0.00000056X)*100%

x Y (X-Xbar)^2 (Y-Ybar)^2 (X-Xbar)(Y-Ybar) Yi'=b0+x*b1 (Y-Yi')^2 35670 0.661 97561326.4318 0.001 -297.869 0.6364 0.0006 57294 0.621 137984638.4318 0.000 -115.624 0.6242 0.0000 41429 0.624 16960507.9416 0.000 28.182 0.6332 0.0001 32228 0.604 177404118.1180 0.001 357.532 0.6384 0.0012 51824 0.526 39396790.5886 0.011 -658.067 0.6273 0.0103 51620 0.631 36877518.5886 0.000 0.953 0.6274 0.0000 60541 0.658 224810628.0984 0.001 407.181 0.6224 0.0013 47804 0.702 5092632.9416 0.005 160.579 0.6296 0.0052 48831 0.413 10782595.5494 0.047 -715.329 0.6290 0.0467 41321 0.642 17861727.7063 0.000 -47.152 0.6332 0.0001 39030 0.607 42475378.1965 0.001 155.393 0.6345 0.0008 51339 0.549 33543629.9023 0.007 -474.010 0.6276 0.0062 42468 0.685 9482173.0200 0.003 -166.766 0.6326 0.0027 48560 0.635 9076278.5886 0.000 12.523 0.6291 0.0000 39995 0.65 30828187.7063 0.000 -106.365 0.6340 0.0003 46411 0.662 745953.9808 0.001 26.910 0.6304 0.0010 40407 0.609 26422825.1965 0.000 112.281 0.6337 0.0006 38354 0.64 51743762.3533 0.000 -65.868 0.6349 0.0000 41123 0.651 19574551.9416 0.000 -89.180 0.6333 0.0003 43192 0.673 5547502.7455 0.002 -99.293 0.6322 0.0017 59876 0.649 205311250.3533 0.000 260.164 0.6228 0.0007 55063 0.604 90548285.2749 0.001 -255.431 0.6255 0.0005 41684 0.675 14925192.9416 0.002 -170.592 0.6330 0.0018 51780 0.673 38846378.1965 0.002 262.750 0.6273 0.0021 30768 0.662 218428114.1965 0.001 -460.477 0.6392 0.0005 44459 0.656 1184426.7651 0.001 -27.379 0.6315 0.0006 36127 0.632 88742310.6867 0.000 -10.898 0.6362 0.0000 45285 0.641 68808.4906 0.000 -2.664 0.6310 0.0001 47124 0.572 2485939.6082 0.003 -92.777 0.6300 0.0034 59821 0.709 203738119.8631 0.006 1115.587 0.6228 0.0074 60467 0.615 222597038.5298 0.000 -236.375 0.6224 0.0001 39232 0.623 39883187.4514 0.000 49.532 0.6344 0.0001 45906 0.497 128655.8435 0.018 -48.008 0.6306 0.0179 37596 0.629 63223389.9612 0.000 14.655 0.6353 0.0000 45765 0.6 47387.3141 0.001 -6.714 0.6307 0.0009 41569 0.632 15826980.0984 0.000 -4.602 0.6331 0.0000 41568 0.631 15834937.7259 0.000 -0.624 0.6331 0.0000 44788 0.622 576557.3337 0.000 6.715 0.6313 0.0001 43862 0.657 2840282.3533 0.001 -44.083 0.6318 0.0006 47324 0.576 3156614.1180 0.003 -97.439 0.6298 0.0029 36791 0.666 76673030.0592 0.001 -307.845 0.6358 0.0009 41516 0.631 16251490.3533 0.000 -0.632 0.6331 0.0000 36207 0.635 87241460.4906 0.000 -38.826 0.6361 0.0000 43165 0.595 5675418.6867 0.001 85.390 0.6322 0.0014 54181 0.686 74540538.6867 0.003 476.207 0.6260 0.0036 48008 0.682 6054976.9416 0.003 125.881 0.6295 0.0028 56191 0.647 113288057.5102 0.000 171.969 0.6248 0.0005 56082 0.608 110979614.9023 0.001 -240.645 0.6249 0.0003 36180 0.703 87746566.4318 0.005 -675.916 0.6361 0.0045 46927 0.645 1903534.2161 0.000 19.532 0.6301 0.0002 48160 0.677 6826129.5690 0.002 120.593 0.6294 0.0023 2322913.0000 32.1730 2809747402.9804 0.1360 -1586.941 0.135076443 45547.314 0.63 Sxx Syy Sxy

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