Homework SourseMany regions along the coast in North and South Carolina and
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 to build 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.
Develop a correlation matrix. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.)
How much does an additional family member add to the amount spent on food? (Round your answer to the nearest dollar amount.)
State the decision rule for 0.05 significance level. H0: = 1 = 2 = 0; H1: Not all i\'s = 0. (Round your answer to 2 decimal places.)
Complete the given below table. (Leave no cells blank - be certain to enter \"0\" wherever required. Round Coef, SE Coef, P to 4 decimal places and T to 2 decimal places.)
| 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 to build 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. |
Solution
As multiple parts are posted, only the first 4 parts will be answered.
a-1. To develop correlation matrix in excel:
Go to Data Analysis -> Correlation -> Input the columns of Food, size and Income in the Input range -> OK
You will get the following correlation matrix:
a-2. There is multicollinearity,
as correlation between Food and Size is high.
b-1. To perform regression:
Go to Data Analysis -> Regression -> Input data for Food in the Y range and Income and Size in the X range -> OK.
You will get the following result:
Food = 3.207 - 0.0001*Income + 0.479*Size
b-2. Another member of the family adds $ 0.479 to the food bill,
as size increases by 1, food bill increases by $ 0.479
| Food | Income | Size | |
| Food | 1 | 0.142 | 0.880 |
| Income | 0.142 | 1 | 0.166 |
| Size | 0.880 | 0.166 | 1 |
