Question

Does a higher state per capita income equate to a higher per capita beer consumption? From the document Survey of Current Business, published by the U

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asked 2020-11-03
Does a higher state per capita income equate to a higher per capita beer consumption? From the document Survey of Current Business, published by the U.S. Bureau of Economic Analysis, and from the Brewer’s Almanac, published by the Beer Institute, we obtained data on personal income per capita, in thousands of dollars, and per capita beer consumption, in gallons, for the 50 states and Washington, D.C. a) Obtain a scatterplot for the data. b) Decide whether finding a regression line for the data is reasonable. If so, then also do parts (c)-(f). c) Determine and interpret the regression equation for the data. d) Identify potential outliers and influential observations. e) In case a potential outlier is present, remove it and discuss the effect. f) In case a potential influential observation is present, remove it and discuss the effect.

Answers (1)

2020-11-04

Given: \(n=\ \text{Sample size}\ =51\) a) Income is on the horizontal axis and Beer is on the vertical axis. image b) It is reasonable to find a regression line for the data if there is no strong curvature present in the scatterplot. We note that there is strong curvature in the scatterplot of part (a) and thus it is not reasonable to find a regression line for the data. c) Not applicable, because it is not reasonable to find a regression line by part (b). d) Not applicable, because it is not reasonable to find a regression line by part (b). e) Not applicable, because it is not reasonable to find a regression line by part (b). f) Not applicable, because it is not reasonable to find a regression line by part (b).

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