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 $\alpha$ = 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 $\alpha$ = 0.05,Abby should ________________.

Quizplus · Accepted Answer

Abby should use the F-test to determine whether there is a significant linear relationship between monthly household expenditures on groceries (dependent variable) and annual household income (independent variable). The null hypothesis for the F-test is that the slope of the regression line (β1) is equal to zero, indicating no linear relationship between the variables.

The F-statistic in this case is 61.46, which is greater than the critical value of 4.03 (from the F-distribution table with 1 numerator degree of freedom and 48 denominator degrees of freedom at the 0.05 level of significance). Therefore, Abby should reject the null hypothesis and conclude that there is a significant linear relationship between monthly household expenditures on groceries and annual household income.

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