How much does household weekly income affect the household weekly expenditure on food? The following data...

How much does household weekly income affect the household weekly expenditure on food?
The following data shows household weekly expenditure on food and the household weekly income (all in dollars).

Use the data below to develop an estimated regression equation that could be used to predict food expenditure for a weekly income.

Use Excel commands for your calculations.

FOOD	INCOME
y	x
91	292
148	479
107	428
146	766
243	1621
312	1661
243	1292
272	1683
349	1808
223	1147
205	1648
182	1351
414	1919
291	2046
212	1577
298	1805
374	2031
141	1618
205	1999
387	1953
426	2114
136	1606
273	1833
400	2166
192	2124

18	The estimated regression predicts that the weekly food expenditure rises by _______ for each additional dollar of weekly income.

a	0.1073	10.7
b	0.1192	11.9
c	0.1324	13.2
d	0.1457	14.6

19	The predicted expenditure on food for a household with $1,000 weekly income is,
a	176.8
b	182.1
c	187.5
d	193.2

20	SSE = ______
a	117507.13
b	116343.69
c	115191.77
d	114051.26

21	SSR = _________
a	125228.74
b	120219.59
c	115410.80
d	110794.37

22	The measure of closeness of fit, or measure of dispersion of observed expenditure on food around the regression line is,

a	66.28
b	67.63
c	69.01
d	70.42

Expert Solution

Q18) The estimated regression predicts that the weekly food expenditure rises by 0.1324 for each additional dollar of weekly income. (c) is correct

Q19) The predicted expenditure on food for a household with $1,000 weekly income is 176.8 . (a) is correct

Q20) SSE = 114051.26 . (d) is correct

Q21) SSR = 125228.74 (a) is correct

Q22) The measure of closeness of fit, or measure of dispersion of observed expenditure on food around the regression line is, 70.42 (d) is correct

For any query in above, comment.

EXCEL Output

orchestra answered 11 months ago

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