Question

Tiffany Dolsing, a market analyst at the market research firm of Sanders & Sons, is analyzing household budget data collected by her firm. Tiffany's dependent variable is monthly household expenditures on groceries in S's), and her independent variable is annual household income (in $1,000's). Repression analysis of the data yielded the following tables. Intercept Coefficients 39.14942 1.792312 Standard Error 22.30182 0.407507 Statistic 1.755436 4.398234 p-value 0.109712 0.001339 Source of SS MS s.-29.51443 F Regression 1 16850.9916850.99 1934446 Residual 9 7839.915 871.1017 Total 10 24690.91 For a household with $50,000 annual income, Tiffany's model predicts monthly grocery expenditures $150,35 $50,35 $1,959.29

Answer 1

So from the given information we have

Monthly Grocery Expenditure = 39.14942+1.792312*Annual Household income

So if Annual Household income = 50000

Then

Monthly Grocery Expenditure = 39.14942+1.792312*Annual Household income

Monthly Grocery Expenditure = 39.14942+1.792312*50000

Monthly Grocery Expenditure = $ 89654.74942