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Dependent Variable: Monthly Grocery Expenditure, Independent Variable: Monthly Income


1400 1200 1000 800 600 400 200 0 0 2000 4000 6000 8000 10000 12000 Linea r (Serie s1) Serie s1 y =0.134x - 75.33

2. 3. Y=0.13X-75.33; Here the intercept value is negative that means at x=579.5 tk income level the expenditure amount would come down to zero at least theoretically. 4. Coefficient of Determination is 0.893 which signifies that the relationship is fairly strong. 5. Setting: Ho: b = 0; [where b is the slope which depicts that there is no linear relationship], Ha: b =/ 0 Here from the test statistics, we get p-value of 2.61x10^-19 which is far less than the significance level. That is why the Null Hypothesis is rejected. So there is a linear relationship between the two variables.

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