The variables in your data set are:

• sau: household savings from income during the year (in £10,000s);

age: the age of the head of the household at the end of the year (in years);

• nchild: the number of children (aged 17 and under) in the household at the end of the year;

• inc: household income during the year (in £10,000s);

• grad: a dummy variable which equals 1 if the head of the household is a graduate and 0

otherwise; and,

• hols: the number of holidays taken by the household during the year.

1. (a) For each of the variables, what is the average, the standard deviation, the minimum value,

and the maximum value in your data set?

(b) What is the number of observations in your data set?

2. (a) Calculate the correlation coefficient between sav and inc. Is there a strong relationship

between these two variables?

(b) Construct a graph that plots savings (on the vertical axis) against income (on the hori-

zontal axis). Does the visual evidence support your answer in part (a)?