The Regression of Saving and Income,
Data
The following table shows 31 observations on saving and income.
The regression of saving and income
First of all, the saving is regressed on income to obtain the coefficient estimates by using simple regression.
Mean of saving = = 1250.322581
Mean of income = = 22423.03226
B1= ∑▒〖xy/〗 x^2 = 0.084665008
B0= (_y^-) -B(_x^-) = -648.1236144
S= -648.123 + 0.0846Y