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Question: A study of vacation expenditures in relation to income was based on data for 256 households, which were grouped into three separate income classes.
Question: A study of vacation expenditures in relation to income was based on data for 256 households, which were grouped into three separate income classes. Log linear regressions (with an intercept term) were computed for each income group and for all households with the following results: Household Income Regression Slope Residual Variance Number of Households
Low income | 0.02 | 0.42 | 102 |
Middle income | 0.09 | 0.46 | 102 |
High income | 0.14 | 0.57 | 52 |
All households | 0.07 | 0.48 | 256 |
Test whether the expenditure function is the same for all income groups. Please note that Approximate critical values of F(4, 250) 10% in right tail 1.97
5% 1% | 2.41 3.40 |
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