Computers Galore, Inc., is trying to construct a consumer profile to know how to direct its marketing efforts.The store has data on twenty recent customers, including the amount spent on each customer's computer system (Ex), the customer's annual household income (M), and the number of years of education (Ed).

A linear regression of Ex on M and Ed yields the following results by the spreadsheet:

Regression Output:

Estimates: Std Error of Coefficients

Constant 1799.18

Income 0.008423 0.009895

Education 0.009895 71.98489

Std Err of Y Est

821.7464

R Squared

0.456706

Observations

20

Degrees of Freedom

17

Question 1:

You are asked by the store manager to estimate how much a college educated person (16 years) earning $40,000 a year is likely to spend on a computer system at CGI.Give your best estimate and construct an approximately 95% confidence interval for your estimate.