Thread: Regression Line and Correlation

Hi, I would need an explanation of how to go about solving this problem.

Mean annual income $ ------- Index of happiness(3 being the happiest)

3300 -----------------------------1.94
7000 -----------------------------2.03
10000 ----------------------------2.07
13400 ----------------------------2.15
17100 ----------------------------2.19
20600 ----------------------------2.29
24300 ----------------------------2.20
29600 ----------------------------2.24
39700 ----------------------------2.30
70900 ----------------------------2.32

Task is to establish a possible relationship between money and happiness using the above data.Must write a report and clearly describe this relationship that addresses the following:correlation is coefficient significant,find the regression line and is it significant.

Have you tried drawing a scatterplot? Estimating the correlation? Entering the data into a CAS or spreadsheet to find the least squares line equation and correlation coefficient?