QUESTION 6

The question has two parts. You are required to answer both parts.

a.A researcher is attempting to predict the average total expenditure of households in Queensland on food items based on the average household expenditure on food items by Australian households. An r² of 0.7936 is obtained. Will the regression be a good predictive model? Please provide a rationale for your answer.

b.According to the output below, does perceived relative advantage influence the likelihood of purchasing a new product? Write out the appropriate regression equation and provide an interpretation of the equation.