Homework Sourse3 An economist for the Federal Department of Welfare examine
3. An economist for the Federal Department of Welfare examines data for several families to identify determinants of consumption expenditures. As seen in the table, data are collected on monthly spending in hundreds of dollars along with the number of children in the family and age of the head of household.
Regressing Expenditures on Children produced these results:
The model using Age as a predictor for Expenditure resulted in
Determine if either explanatory variable is significant at the 5% level. Which would you suggest be used to predict mean expenditures?
| Children | Age | Expenditures |
| 3 | 36 | 5.2 |
| 6 | 52 | 9 |
| 0 | 47 | 3.2 |
| 2 | 32 | 5 |
| 5 | 58 | 9.5 |
| 6 | 35 | 11 |
| 1 | 21 | 3.5 |
| 0 | 19 | 2 |
| 6 | 32 | 11 |
| 3 | 39 | 6.5 |
| 4 | 41 | 8 |
Solution
Regressing Expenditures on Children
Regression Analysis
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