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An education task force looking at poverty levels in the United States has collected data for each state and the District of Columbia on the total number of people below the poverty level and the number of adults over the age of 25 who did not graduate from high school for the year 1993. The data are shown in the table below:

            Number             Number of Adults                                  Number          Number of Adults

            (1000) Below        Over 25 not                                        (1000)Below      Over 25 not

State    Poverty Level    HS Graduates               State                Poverty Level    HS Graduate    

Alabama           725       843,638             District of Columbia      158                   109,866

Alaska              52         43,244                          Florida              2507                 2,271,074

Arizona             615       491,080                         Georgia            919                   1,169,815

Arkansas          484       503,481                         Hawaii               91                     141,506

California          5803     4,450,528                      Idaho                150                   121,787

Colorado          354       328,056                         Illinois               1600                 1,735,789

Connecticut       277       457,208                         Indiana              704                   850,014

Delaware           73         96,472                          Iowa                 290                   353,800

Kansas             327       293,272                         North Dakota    70                     92,427

Kentucky          763       825,857                         Ohio                 1461                 1,684,888

Louisiana          1119     803,872                         Oklahoma         662                   506,961

Maine               196       168,460                         Oregon             363                   343,609

Maryland           479       673,932                         Pennsylvania     1598                 1,994,278

Massachusetts  641      792,657                         Rhode Island     108                   184,344

Michigan           1475     1,356,759                      South Carolina 678                   687,260

Minnesota         506       488,765                         South Dakota    102                   98,720

Mississippi       639       549,685                         Tennessee        998                   1,033,914

Missouri            832       858,368                         Texas               3177                 2,872,559

Montana           127       96,469                          Utah                 203                   133,315

Nebraska          169       181,072                         Vermont            59                    68,637

Nevada             141       167,628                         Virginia             627                   987,203

New Hampshire 112       127,423                         Washington       634                   505,783

New Jersey       866       1,205,206                      West Virginia     400                   398,527

New Mexico      282       229,974                         Wisconsin         636                   662,072

New York          2981     2,977,604                      Wyoming          64                     47,113

North Carolina   966       1,277,747

(a) The task force would like to find a model that will predict the number of people living below the poverty level from the number of adults who are not high school graduates. Which is the dependent variable and which is the independent variable?

(b) Create a scatter plot of the data. Do you think that a linear relationship exists between the two variables?

(c) Find the linear regression model for the data.

(d) Interpret the meaning of the slope and the y intercept of the model. Do you think that?

the Y intercept makes sense for these data?

 (e) Use the model to predict the number of people who are below the poverty level for the states of Wyoming, Connecticut and North Carolina. What are the residuals for these three observations?

(f) At the 0.05 level of significance, is the model significant?

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