Question
The following table depicts the income and expenditure of 12 randomly chosen families per month and the gender of the head of the family in
The following table depicts the income and expenditure of 12 randomly chosen families per month and the gender of the head of the family in a certain locality. The value M in gender value is encoded as 1 and F is encoded as 0.
| Expenditure | Income | Code | Gender |
| 37070 | 45100 | 1 | M |
| 22700 | 28070 | 1 | M |
| 24260 | 26080 | 0 | F |
| 30420 | 35000 | 1 | M |
| 17360 | 18860 | 0 | F |
| 33520 | 41270 | 1 | M |
| 26960 | 32940 | 1 | M |
| 19360 | 21440 | 0 | F |
| 35680 | 44700 | 1 | M |
| 22360 | 24400 | 0 | F |
| 28640 | 33620 | 0 | F |
| 39720 | 46000 | 1 | M |
1. Determine the best fitting regression for the above data from income and gender. What is the value of coefficient of determination and how do you interpret it?
2. If income is held constant, is there a significant difference in expenditure between households headed by male versus female? State explicit hypothesis at 0.05 level of significance and interpret the conclusion.
3. Give an approximate 99% confidence interval for income and Gender coefficients. How do they compare with 95% confidence intervals?
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Elementary Statisitcs
Authors: Barry Monk
2nd edition
1259345297, 978-0077836351, 77836359, 978-1259295911, 1259295915, 978-1259292484, 1259292487, 978-1259345296
