In order to develop new guidelines for identifying consumer debt problems, we have collected a random sample of 100 low- and middle-class households to examine the current relationship between the total consumer debt of a household and its income. We estimate that 2-3% of all U.S. households carry more consumer debt than they can handle.
You have been asked to examine the collected data and do two things: (1) provide a thorough analysis of the relationship between the total consumer debt and the income of low- to middle-income households, and (2) develop rule of thumb, based on this relationship, for identifying the 2-3% of all households with serious consumer debt problems.
The data are contained in the excel spreadsheet. For each of the 100 households in the random sample, the file contains the total consumer debt (debt) and total income (income) of the household.
Note: Regression Analysis – Be sure to include statistical graphs/charts/scatterplots ect… to support analysis.