Suppose that, for a certain population, we can predict log earnings from log height as follows: • A person who is 66 inches tall is predicted to have earnings of 30,000. • Every increase of 1% in...

Suppose that, for a certain population, we can predict log earnings from log height as follows:

• A person who is 66 inches tall is predicted to have earnings of
30,000.

• Every increase of 1% in height corresponds to a predicted increase of 0.8% in earnings.

• The earnings of approximately 95% of people fall within a factor of 1.1 of predicted values.

(a) Give the equation of the regression line and the residual standard deviation of the regression.

(b) Suppose the standard deviation of log heights is 5% in this population. What, then, is the R²
of the regression model described here?