Suppose we take a sample of seven households and collect information on their incomes and food expenditure for the past month. The information obtained (in hundreds of Ringgit Malaysia) is given in the table below: Income (RM 00) Food Expenditure (RM 00) 100 150 200 250 300 350 400 Show that the correlation coefficient for the given data above is 0.9587 (marks). Calculate the coefficient of determination. Interpret your answer (marks). Find the equation of the regression line for the data above (marks). Find the standard error of estimate (marks). Use the regression equation to estimate the food expenditure when the income is RM300 and RM700. If the value of income is not meaningful, predict the value of food expenditure and explain your reason (marks).
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Step 1
Calculate the correlation coefficient for the given data: First, we need to find the mean of both Income and Food Expenditure. Then, we will calculate the deviations from the mean for each data point, multiply the deviations, and sum them up. Finally, we will Show more…
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