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 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 ___.

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 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 ___.

Quizplus · Accepted Answer

The equation for Abby's model is: y = 19.68247 + 1.735272 x₁ + 49.12456 x₂ Where: - y represents monthly household expenditures on groceries (in $'s) - x₁ represents household neighborhood (0 = suburban, 1 = rural) - x₂ represents annual household income (in $1,000's) This is determined from the regression analysis table, where the coefficients for suburban/rural neighborhood and annual household income are 1.735272 and 49.12456, respectively. The intercept is 19.68247. Therefore, the best choice is E.

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