Question

Many regions in North and South Carolina and Georgia have experienced rapid population growth over the last 10 years. It is expected that the growth will continue over the next 10 years. This has motivated many of the large grocery store chains to build new stores in the region. The Kelley’s Super Grocery Stores Inc. chain is no exception. The director of planning for Kelley’s Super Grocery Stores wants to study adding more stores in this region. He believes there are two main factors that indicate the amount families spend on groceries. The first is their income and the other is the number of people in the family. The director gathered the following sample information.

Family		Food			Income			Size
1		$	4.14		$	73.98		4
2			4.08			54.90		2
3			5.76			138.86		4
4			3.48			52.02		1
5			4.20			65.70		2
6			4.80			53.64		4
7			4.32			79.74		3
8			5.04			68.58		4
9			6.12			165.60		5
10			3.24			64.80		1
11			4.80			138.42		3
12			3.24			125.82		1
13			7.17			77.58		7
14			5.94			146.51		6
15			6.60			162.69		8
16			5.40			141.30		3
17			6.00			36.90		5
18			5.40			56.88		4
19			3.36			71.82		1
20			4.68			69.48		3
21			4.32			54.36		2
22			5.52			87.66		5
23			4.56			38.16		3
24			5.40			43.74		7
25			6.71			59.83		5

Complete the ANOVA (Leave no cells blank - be certain to enter "0" wherever required. Round SS, MSto 4 decimal places and F to 2 decimal places.)

	Source DF SS MS F p-value Regression Error Total

State the decision rule for 0.05 significance level. H₀: = β₁ = β₂ = 0; H₁: Not all β_i's = 0

Complete the table given below. (Leave no cells blank - be certain to enter "0" wherever required. Round Coefficient, SE Coefficient, P to 4 decimal places and T to 2 decimal places.)

	Predictor Coefficient SE Coefficient t p-value Constant Income Size

Answer 1

Solution: We can use excel regression data analysis tool to find the answer to the given questions. The excel output is given below:

Complete the ANOVA (Leave no cells blank - be certain to enter "0" wherever required. Round SS, MS to 4 decimal places and F to 2 decimal places.)

State the decision rule for the 0.05 significance level. H₀: = β₁ = β₂ = 0; H₁: Not all β_i's = 0

Answer: Reject H₀ if the p-value is less than 0.05

Complete the table given below. (Leave no cells blank - be certain to enter "0" wherever required. Round Coefficient, SE Coefficient, P to 4 decimal places and T to 2 decimal places.)

Answer: