The Data Listed Below Is the Average Personal Income and Personal

Essay

The data listed below is the average personal income and personal consumption expenditures based on the survey
conducted in the year 1995 to 2009 in U.S. $$\begin{array}{l}\begin{array} { | c | c | } \hline \text { Personal income } & \text { Personal consumption }\\\mathbf { ( \$ ) } & \text { expenditures } ( \$ \mathbf { \$ } ) \\\hline 23,310 & 18,714 \\\hline 24,444 & 19,569 \\\hline 25,657 & 20,414 \\\hline 27,260 & 21,434 \\\hline 28,336 & 22,738 \\\hline 30,317 & 24,227 \\\hline 31,162 & 25,074 \\\hline 31,448 & 25,865 \\\hline 32,282 & 26,848 \\\hline 33,872 & 28,228 \\\hline 35,423 & 29,818 \\\hline 37,723 & 31,210 \\\hline 39,418 & 32,551 \\\hline 40,156 & 33,273 \\\hline 39,113 & 32,853 \\\hline\end{array}\end{array}$$
a. Develop a scatter chart for the above data. What does this chart indicate about the relationship between average
personal income and personal consumption expenditure?
b. Develop an estimated regression equation showing how personal consumption expenditure is related personal
income.
c. What proportion of variation in the sample values of proportion of personal consumption expenditure does this
model explain?