Question 3 To study the relationship between weekly expenditure and weekly income (in dollars) of recent graduates, the following equation has been estimated

Assistance on Economics Task

Question 3 (24 points)

To study the relationship between weekly expenditure and weekly income (in dollars) of recent graduates, the following equation has been estimated:

EXPENDITURE, = B,0 + B₁1NCOME, + ei

The summary output based on data obtained from 10 alumni is given as follows:

Summary Output

Regression Statistics

Multiple R 0_83

R Square A

Adjusted R Square 0.65

Standard Error B

Observations 10

Anova

	Df	SS	MS	F	Significance F
Regression	1 8 9	216216.22 98783.78 315000.00	216216.22 12347.97	17.51	0.00
Residual
Total

Coefficients Standard Error t stat p-value

intercept	C	133.87	*0.44*	0.67
income	D	0.13	4.18	0.00

(A) Find the values of A, B, C, lD and interpret their meanings. (8 Points)

(B) What is the significance level of the coefficient on INCOME? (4 Points)

(C) What conclusions can you reach based on the regression results? (6 Points)

(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? (6 Points)

(8+4+6+6 = 24 Points)

Our Academic Assistance: service is all about doing research and being good at it. The more research one will do, the better the paper will turn out.

Order Now