Question

6. (a) Fit a simple linear regression (SLR) of Isav on line, and report the regression results. (b) Is line a statistically significant determinant of Isav at the 10% level? (c) How much of the variation in Isav can be attributed to the variation in linc? (d) What is the effect on savings of an increase of 1% in income?

Fig: 1