For one of its clients, a marketing research firm would like to predict the weekly food expenditures for households. The independent variables of interest are the number of individuals living in a household, the number of teenagers in it, and the total household income. Data for these variables from randomly selected households can be found in the Excel file food
For one of its clients, a marketing research firm would like to predict the weekly food expenditures for households. The independent variables of interest are the number of individuals living in a household, the number of teenagers in it, and the total household income. Data for these variables from randomly selected households can be found in the Excel file food expenditures.xlsx.
a. Construct a regression model using all three independent variables.
b. Interpret the meaning of the regression coefficients.
c. Test the significance of the overall regression model using α = 0.05.
d. Predict the average weekly food expenditure for a household with a weekly income of $ 1,200 and five people, one of whom is a teenager.
e. Construct a 95% confidence interval for the average weekly food expenditure for the household described in part d. Interpret the meaning of the interval.
f. Construct a 95% prediction interval for the weekly food expenditure for the household described in part d. Interpret the meaning of the interval.
g. Test the significance of each independent variable using α = 0.05.
h. Construct a 95% confidence interval for the regression coefficients for the teenager variable. Be sure to interpret the meaning of this confidence interval.
i. Construct a regression model using best subsets. Identify the most appropriate regression model for this problem.
a. Construct a regression model using all three independent variables.
b. Interpret the meaning of the regression coefficients.
c. Test the significance of the overall regression model using α = 0.05.
d. Predict the average weekly food expenditure for a household with a weekly income of $ 1,200 and five people, one of whom is a teenager.
e. Construct a 95% confidence interval for the average weekly food expenditure for the household described in part d. Interpret the meaning of the interval.
f. Construct a 95% prediction interval for the weekly food expenditure for the household described in part d. Interpret the meaning of the interval.
g. Test the significance of each independent variable using α = 0.05.
h. Construct a 95% confidence interval for the regression coefficients for the teenager variable. Be sure to interpret the meaning of this confidence interval.
i. Construct a regression model using best subsets. Identify the most appropriate regression model for this problem.
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Answer
a. Set x 1 = People, x 2 = Income, x 3 = Teenagers y=592.6149+44.2289x 1 +0.2522x 2 +27.8032x 3 b. E…View the full answer
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