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?

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