Question 3 (24 points) 2 3 To study the relationsh. @ between weekly expenditure and weekly income (in dollars) of recent graduates, the following equation has been estimated: EXPENDITURE, = Bo + BjINCOME, + The summary output based on data obtained from 10 alumni is given as follows: SUMMARY OUTPUT Regression Statistics Multiple R 0.83 R Square Adjusted R Square 0.65 Standard Error B Observations 10 ANOVA of SS MS F Significance F Regression 216216.22 216216.22 17.51 0.00 Residual 98783.78 12347.97 Total 315000.00 Coefficients Standard Error t Stat P-value 0O tv 4 W MacBook Air315000.00 2 3 Coefficients Standard Error & Stat P-value -- Intercept C 153.87 0.44 0.67 Income D 0.13 4.18 0.00 (A) Find the values of A, B, C, D and interpret their meanings. (B) What is the significance level of the coefficient on INCOME? (C) What conclusions can you reach based on the regression results? (D) What is the predicted weekly expenditure for a graduate with a weekly income of (i) $1,000, (ii) $2,000, (iii)$10,000? Are these predictions reliable? (8+4+6+6 = 24 marks) EVE + v . . . Paragraph BIUA FEB as tv 4 9 MacBook Air