Table P-9 contains data on food expenditures, annual income, and family size for a sample of 10 families.

a. Construct the correlation matrix for the three variables in Table P-9. Interpret the correlations in the matrix.
b. Fit a multiple regression model relating food expenditures to income and family size. Interpret the partial regression coefficients of income and family size. Do they make sense?
c. Compute the variance inflation factors (VIFs) for the independent variables. Is multicollinearity a problem for these data? If so, how might you modify the regression model?

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TABLE P-9 Annual Food Expenditures ($100s) Y Annual Income Family Size Family ($1,000s) x, 24 16 18 15 21 20