MULTIPLE REGRESSION Is personal spending linearly related to orders for durable goods and personal income? A recent study reported the amount of personal spending (in trillions of dollars), amount spent on durable goods (in billions of dollars), and personal income (in trillions of dollars). A statistical package was used to fit a linear regression model, producing the output below. Source Sum of Squares df Mean Square F-ratio Regression 0.0436 0.0218 105 Residual 0.0019 0.0002 Variable Coefficient s.e. of Coeff t-ratio Constant -0.6023 0.3826 -1.57 Goods -0.0013 0.0016 -0.80 Income 0.9580 0.1023 9.36 R2 = 95.9% R-(adjusted) =95.0%, s = 0.0144 with 12-3 = 9 of (a) Write the model that was fit. Include the estimates of the parameters. ANS: y = + X 1 + X2 (b) Predict the level of personal spending when amount spent on durable goods is 130 and personal income is at 5.10. ANS