Many regions along the coast in North and South Carolina and Georgia have experi

Question

Many regions along the coast in North and South Carolina and Georgia have experienced rapid population growth over the last 10 years. It is expected that the growth will continue over the next 10 years. This has motivated many of the large grocery store chains building new stores in the region. The Kelley's Super Grocery Stores Inc. chain is no exception. The director of planning for Kelley's Super Grocery Stores wants to study adding more stores in this region. He believes there are two main factors that indicate the amount families spend on groceries. The first is their income and the other is the number of people in the family. The director gathered the following sample information. Food and income are reported in thousands of dollars per year, and the variable size refers to the number of people in the household. (a-1) Develop a correlation matrix. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.) (a-2) Do you see any problems with multicollinearity? There is . (b-1) Determine the regression equation. (Round your answers to 3 decimal places.) The regression equation is: Food = + Income + Size. (b-2) How much does an additional family member add to the amount spent on food? (Omit the $ sign in your response.) Another member of the family adds $ to the food bill.

Explanation / Answer

A1)

Correlation Matrix

food

income

income

0.195

size

0.681

0.078

A2) No

B1) regression line

Food = 3.244+0.004income+0.381 size

B2)   0.381

Excel output

Regression Analysis

R

Correlation Matrix

food

income

income

0.195

size

0.681

0.078

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.