A researcher is interested in examining the relationship between income and expenditure. The researcher collects data on income and expenditure for 50 households in a particular city. The data are presented in the table below:

Household	Income (X)	Expenditure (Y)
1	12	10
2	16	14
3	20	18
4	24	22
5	28	26
...	...	...
50	52	50

(a) Calculate the sample mean and sample standard deviation of income and expenditure.

(b) Calculate the correlation coefficient between income and expenditure.

(c) Estimate the regression equation of expenditure on income.

(d) Interpret the meaning of the estimated slope coefficient.

(e) Predict the average expenditure for a household with an income of $30,000.

(f) Test the hypothesis that the slope coefficient is equal to zero at 5% level of significance.

(g) Interpret the meaning of the p-value obtained in part (f).

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The detailed answer for the above question is provided below a Sample mean and sample standard deviation of income and expenditure Mean and standard d... View the full answer