Question

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

23	The fraction of variations in weekly expenditure on food explained by weekly income is,
a	0.6019
b	0.5234
c	0.4606
d	0.4053
24	The weekly food expenditure and income figures above are data from a sample of 25 households selected from the population of all households to compute b₁ as an estimate of the population slope parameter β₁. The sample statistic b₁ is the estimator of the population parameter β₁. The standard error of the sample statistic b₁ is,
a	0.0455
b	0.0380
c	0.0316
d	0.0264

Answer 1