A chain store that sells bulk foods is planning a marketing campaign. Using data from a national survey of 905 people, it constructs variables that report for each respondent the weekly amount spent by his or her household on food (both groceries and eating out). A regression of this variable against weekly household income (in $1000) results in the model:

QUESTION: 

Write an interpretation of this model. How should the store managers interpret the relationship between spending on food and weekly household income?

Transcribed Image Text:

= Food $/wk 101.33 +0.77 HHincome