Question

PLEASE ANSWER URGENT!!! A world wide fast food chain decided to carry out an experiment to assess the influence of income on number of visits to their restaurants or vice versa. A sample of 8 households was asked about the number of times they visit a fast food restaurant (V) during last month as well as their monthly income (I). The data presented in the following table are the sums and sum of squares. (use 2 digits after decimal point)

∑ I = 393	∑ I2 = 21027	∑ ( I-Ibar )2 = SSI = 1720.88
∑ V = 324	∑ V2 = 14272	∑ ( V-Vbar )2 = SSV = 1150
∑ IV = 17007		∑ [ ( I-Ibar )( V-Vbar) ] =SSIV=1090.5

a. Compute sample correlation coefficient. r=Answer

b. Test correlation coefficient for significance. (hint: ρ is population correlation coefficient)

Null Hypothesis is

Ho: ρ>0

Ho: ρ≥0

Ho: ρ<0

Ho: ρ≤0

Alternative Hypothesis is

H1: ρ<0

H1: ρ≥0

H1: ρ>0

H1: ρ≤0

Test statistic  is ???<---- answer

Critical Value of the test at α=5% is ???<--- answer

Does your findings support the hypothesis that as income increases, number of visits also increases at 5% significance level?

May be

Yes

No

c. Find the linear regression equation of visits based on income.

Estimated visit = ?? + ?? Income

d. Find the linear regression equation of income based on visits.

Estimated income = ?? + ?? Visit

e. Which model is more deterministic? (hint: use coefficient of determination to decide)

Model in part (c)

Model in part (d)

They are equivalent

Answer 1