(21) 7. The Minitab output (below) shows a relationship where Y = Monthly Food E
ID: 3352589 • Letter: #
Question
(21) 7. The Minitab output (below) shows a relationship where Y = Monthly Food Expenditures (tens of dollars), X1- Monthly Income (thousands of dollars), and X2 Family Size. We would like to predict Monthly Food Expenditures (Y). There are two 2-variable regression relationships shown and one 3-variable multiple regression relationship shown. n=10. a. What is the single best independent variable that I can choose to predict Monthly food expenditures? Why? b. What is R-squared for the relationship you chose in part a.?Explanation / Answer
Don't hesitate to write back in case you have doubts:
1. That should be the Food Exp. as it has the highest Rsquare
and the p-value is less than .05, which makes it statistically significant
2. The Rsquare is 87.0% or .87
3. Yes, the p-value of less than .05 means that it statistically significant
4. No, seems not. When we try to do that ( as in table 3 with 3 variables), we don't get a statistically significant
Farm Size variable and also, the adjusted Rsquare doesn't climb up to a value much better than one where we use
just 1 variable i.e. Income
5.
i. Ho: Bincome = 7.918
Ha: Bincome != 7.918
Ho: Bfarmsize = -1.0234
Ha: Bfarmsize != -1.0234
ii. This has a p-value of less .05 and hence is statistically significant
This has a p-value of more .05(.239) and hence is NOT statistically significant
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