Chapter 10.7, Problem F.2RE

In ongoing economic analyses, the U.S. federal government compares per capita incomes not only among different states but also for the same state at different times. Typically, what the federal government finds is that "poor" states tend to stay poor and "wealthy" states tend to stay wealthy. Would we have been able to predict the  1999  per capita income for a state (denoted by  y ) from its  1980  per capita income (denoted by  x )? The following bivariate data give the per capita income (in thousands of dollars) for a sample of fourteen states in the years  1980  and  1999  (source: U.S. Bureau of Economic Analysis, Survey of Current Business, May  2000 ). The data are plotted in the scatter plot in Figure 1, and the least-squares regression line is drawn. The equation for this line is  =y+0.382.75x  .     1980  per capita income, x(in $1000s) 1999  per capita income, y(in $1000s) South Dakota 8.1 25.1 Utah 8.5 23.4 West Virginia 8.2 20.9…