Personal Spending and Personal Income
Is personal spending linearly related to orders for durable goods and personal income? A recent study reported the amounts of personal spending (in trillions of dollars), amount spent on durable goods (in billions of dollars), and personal income (in trillions of dollars). A statistical package was used to fit a linear regression model, producing the output below. R 2 = 95.9% R 2 (adj) = 95.0%, s = 0.0144 with 12 - 3 = 9 df.
-Refer to Personal Spending and Personal Income. Based on your confidence intervals in the previous question, does the amount spent on durable goods have any predictive power beyond that provided by the other independent variables for determining personal spending? Explain.

Question

Personal Spending and Personal Income
Is personal spending linearly related to orders for durable goods and personal income? A recent study reported the amounts of personal spending (in trillions of dollars), amount spent on durable goods (in billions of dollars), and personal income (in trillions of dollars). A statistical package was used to fit a linear regression model, producing the output below.   R 2 = 95.9% R 2 (adj) = 95.0%, s = 0.0144 with 12 - 3 = 9 df.
-Refer to Personal Spending and Personal Income. Based on your confidence intervals in the previous question, does the amount spent on durable goods have any predictive power beyond that provided by the other independent variables for determining personal spending? Explain.

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The Answer of Personal Spending and Personal Income
Is personal spending linearly related to orders for durable goods and personal income? A recent study reported the amounts of personal spending (in trillions of dollars), amount spent on durable goods (in billions of dollars), and personal income (in trillions of dollars). A statistical package was used to fit a linear regression model, producing the output below.   R 2 = 95.9% R 2 (adj) = 95.0%, s = 0.0144 with 12 - 3 = 9 df.
-Refer to Personal Spending and Personal Income. Based on your confidence intervals in the previous question, does the amount spent on durable goods have any predictive power beyond that provided by the other independent variables for determining personal spending? Explain.