Question: The following table gives information on the incomes (in thousands of dollars) and charitable contributions (in hundreds of dollars) for the last year for a random sample of 10 households.
a. With income as an independent variable and charitable contributions as a dependent variable, compute SSxx, SSyy, and SSxy.
b. Find the regression of charitable contributions on income.
c. Briefly explain the meaning of the values of a and b.
d. Calculate r and r2 and briefly explain what they mean.
e. Compute the standard deviation of errors.
f. Construct a 99% confidence interval for B.
g. Test at the 1% significance level whether B is positive.
h. Using the 1% significance level, can you conclude that the linear correlation coefficient is different from zero?