R e fe r b a c k to the fo o d e x p e n d itu re e x a m p le w h e re y re p re se n ts e x p e n d itu re o n fo o d and x represents income. Let the sample regression be w ith the standard error o f the estimate se = 0.18.

a. W hat is the predicted food expenditure fo r an individual whose income is

$20,000?

b. W hat is the predicted value if income increases to $21,000?

c. Interpret the slope coefficient, b 1 = 0.50