Monthly Household Spending ($)Annual Household Income ($)HouseholdSize4,0165400033,1593000025,1003200044,7425000051,8643100024,0705500022,7313700013,3484000024,7646600044,1105100034,2082500034,2194800042,4772700012,5143300024,2146500034,9656300044,4124200062,4482100022,9954400014,1713700055,6786200063,6232100035,3015500073,0204200024,8284100075,5735400062,5833000013,8664800023,5863400055,0376700043,6055000025,3456700055,3705500063,8905200024,7056200034,1576400023,5792200033,8902900042,9723900023,1213500014,1833900043,7305400034,1272300062,9212700024,6032600074,2736100023,0673000023,0742200044,8204600055,149660004 Develop a scatter plot between annual household spending and annual income. The scatter diagram should include a proper title, a solid trend line, axis titles, and a regression equation, and the Coefficient of Determination (R –square). (1’) Use Excel’s Data Analysis tool to conduct a multiple regression analysis with annual income and household size as independent variables. Choose confidence level at 95%. Using significance level α=0.05. (1’)Please copy and paste the regression analysis output below. Based on the multiple regression analysis output, write the estimated multiple regression equation.Show decimal places to the thousands (e.g. 3.456) (0.5’) Interpret regression coefficients b1 and b2. (1’) (1) Interpret the multiple coefficient of determination r-square. (0.5’) (2) Compare the r-square of the simple linear model (shown in the scatter plot in Question a) and the r-square of the multiple regression model, what does the differences in r-squares tell us? (0.5’) What does F-test for significance tell us? (0.5’) What does t-test for significance tell us? (0.5’) Can you tell from the 95% confidence intervals whether the two independent variables are statistically significant? Explain. (0.5’) If a household has 3 members, and has an annual income of $100,000, predict this household’s monthly spending.Show decimal places to the thousands (e.g. 3.456) (0.5’) Is there any multicollinearity problem in the above regression model? How do you know? (0.5’)

Given:- To Develop a scatter plot between annual household spending and annual…

Answered: Develop a scatter plot between annual…

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)

6th Edition

ISBN:9781337111348

Author:Bruce Crauder, Benny Evans, Alan Noell

Publisher:Bruce Crauder, Benny Evans, Alan Noell

Chapter3: Straight Lines And Linear Functions

Section3.3: Modeling Data With Linear Functions

Problem 18E: Tax Table Here are selected entries from the 2014 tax table that show the federal income tax owed by...

See similar textbooks

Related questions

Question

Monthly Household Spending ($)	Annual Household Income ($)	Household Size
4,016	54000	3
3,159	30000	2
5,100	32000	4
4,742	50000	5
1,864	31000	2
4,070	55000	2
2,731	37000	1
3,348	40000	2
4,764	66000	4
4,110	51000	3
4,208	25000	3
4,219	48000	4
2,477	27000	1
2,514	33000	2
4,214	65000	3
4,965	63000	4
4,412	42000	6
2,448	21000	2
2,995	44000	1
4,171	37000	5
5,678	62000	6
3,623	21000	3
5,301	55000	7
3,020	42000	2
4,828	41000	7
5,573	54000	6
2,583	30000	1
3,866	48000	2
3,586	34000	5
5,037	67000	4
3,605	50000	2
5,345	67000	5
5,370	55000	6
3,890	52000	2
4,705	62000	3
4,157	64000	2
3,579	22000	3
3,890	29000	4
2,972	39000	2
3,121	35000	1
4,183	39000	4
3,730	54000	3
4,127	23000	6
2,921	27000	2
4,603	26000	7
4,273	61000	2
3,067	30000	2
3,074	22000	4
4,820	46000	5
5,149	66000	4

Develop a scatter plot between annual household spending and annual income. The scatter diagram should include a proper title, a solid trend line, axis titles, and a regression equation, and the Coefficient of Determination (R –square). (1’)

Use Excel’s Data Analysis tool to conduct a multiple regression analysis with annual income and household size as independent variables. Choose confidence level at 95%. Using significance level α=0.05. (1’)

Please copy and paste the regression analysis output below.

Based on the multiple regression analysis output, write the estimated multiple regression equation.

Show decimal places to the thousands (e.g. 3.456) (0.5’)

Interpret regression coefficients b₁ and b₂. (1’)

(1) Interpret the multiple coefficient of determination r-square. (0.5’)

(2) Compare the r-square of the simple linear model (shown in the scatter plot in Question a) and the r-square of the multiple regression model, what does the differences in r-squares tell us? (0.5’)