Abby Kratz,a market specialist at the market research firm of Saez,Sikes,and Spitz,is analyzing household budget data collected by her firm.Abby's dependent variable is monthly household expenditures on groceries (in $'s),and her independent variable is annual household income (in $1,000's).Regression analysis of the data yielded the following tables. Using  = 0.05,Abby should ___.

Question

Abby Kratz,a market specialist at the market research firm of Saez,Sikes,and Spitz,is analyzing household budget data collected by her firm.Abby's dependent variable is monthly household expenditures on groceries (in $'s),and her independent variable is annual household income (in $1,000's).Regression analysis of the data yielded the following tables.   Using  = 0.05,Abby should ___.

Quizplus · Accepted Answer

The F-test is used to examine the significance of the overall regression model. The null hypothesis, H₀: F1F1F1S1F1F1F10₁ = 0, states that the independent variable(s) are not significantly related to the dependent variable. The F-statistic in the ANOVA table is 20.62 and the corresponding p-value is less than 0.05, which means that the null hypothesis can be rejected. Therefore, there is evidence to suggest that the independent variable (annual household income) is significantly related to the dependent variable (monthly household expenditures on groceries).

Abby Kratz,a Market Specialist at the Market Research Firm of Saez,Sikes,and