What is the slope saying about the two variables? Write the equation that represents the line? What would predict saving to be at the $12,500 level of income?

Homework 1

The following table contained data on the relationship between saving and income:
Income Per Year Saving Per Year
$15,000 $1,000
0 – 500
10,000 500
5,000 0
20,000 1,500
a) Rearrange the data into a meaningful order (Hint start with 0 and – 500).
b) Graph them on a piece of paper.
c) Calculate the slope of the line that you have graphed.
d) What is the slope saying about the two variables?
e) Write the equation that represents the line.
f) What would predict saving to be at the $12,500 level of income