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Regression analysis: market specialist is analyzing household budget data

A market specialist is analyzing household budget data collected by her firm. The specialist's dependent variable is monthly household expenditures on healthcare (in $'s), and her independent variable is annual household income (in $1,000's). Regression analysis of the data yielded the following tables.

Coefficients Standard Error t Statistic p-value
Intercept 39.14942 22.30182 1.755436 0.109712
X 1.792312 0.407507 4.398234 0.001339

Source df SS MS F Se = 29.51443
Regression 1 16850.99 16850.99 19.34446 r2 = 0.682478
Residual 9 7839.915 871.1017
Total 10 24690.91

What are the dependent and independent variables?


What is the regression equation (i.e., the estimated model)?
Provide an interpretation of the coefficients (intercept and slope).
What percentage of variability in monthly expenditure on healthcare can be explained by the household's income? Why?
Provide an interpretation of the standard error of estimate for this case?

Solution Preview

Please see the attached file

The given information can be summarized as follows:

Regression Statistics

R Square 0.6825
Standard Error 29.5144
df SS MS F
Regression 1 16850.9900 16850.9900 19.3445
Residual 9 7839.9150 871.1017
Total 10 24690.9100

Coefficients Standard Error t ...

Solution Summary

The expert examines market specialist for analyzing household budget data using regression analysis.