Computers Galore, Inc., is trying to construct a consumer profile to know how to direct its marketing efforts.The store has data on twenty recent customers, including the amount spent on each customer's computer system (Ex), the customer's annual household income (M), and the number of years of education (Ed).

A linear regression of Ex on M and Ed yields the following results by the spreadsheet:

Regression Output:

Estimates: Std Error of Coefficients

Constant -1799.18

Income 0.008423 0.009895

Education 251.7695 71.98489

Std Err of Y est 821.7464

R squared 0.456706

Observations 20

Degrees of Freedom 17

b.

The store manager thinks both income and education are roughly equally importantdeterminants of how much a customer spends on a computer system.Do the results of the regression bear this out?Explain with reference to t statistics.(A t statistic is calculated by t = b/s_b.)