Question: The datafile Income contains the annual disposable income and total annual consumption for 12 families selected at random from a metropolitan area. It is desired to use the income to predict the annual consumption.

1. Find the least squares regression equation.
2. What percentage of the variation in y is being explained by the linear relationship?
3. Construct a 90% confidence interval for the slope.
4. Is this linear relationship significant? State the hypotheses tested, the p-value and the conclusion.
5. Give an estimate of .
6. What is the value of the correlation coefficient? Can we say that the greater income a family has, it causes the family to consume more?

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