Abby Ross, a market specialist at the market research firm of Saez, Gann, 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 variables are annual household income (in $1,000's)and household neighbourhood (0 = suburban, 1 = rural).Regression analysis of the data yielded the following table: Abby's model is ___. A)y = 19.68247 + 10.01176 x₁ + 1.965934 x₂ B)y = 1.965934 + 9.940612 x₁ + 6.416667 x₂ C)y = 10.01176 + 0.174564 x₁ + 7.655776 x₂ D)y = 19.68247 - 1.735272 x₁ + 49.12456 x₂ E)y = 19.68247 + 1.735272 x₁ + 49.12456 x₂

Question

Quizplus · Accepted Answer

The model equation is y = 19.68247 + 1.735272 x₁ + 49.12456 x₂. This is because the coefficients for both independent variables are both significant (p < 0.05) and positive. Additionally, the model has a high R-squared value of 0.913, indicating a strong fit between the independent variables and the dependent variable.

Abby Ross, a Market Specialist at the Market Research Firm