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Household food consumption. The data in the table onthe
Chapter 12, Problem 166SE(choose chapter or problem)
Household food consumption. The data in the table on the next page were collected for a random sample of 26 households in Washington, D.C. An economist wants to relate household food consumption, y, to household income, \(x_1\), and household size, \(x_2\), with the first-order model
\(E(y)=\beta_{0}+\beta_{1} x_{1}+\beta_{2} x_{2}\)
a. Fit the model to the data. Do you detect any signs of multicollinearity in the data? Explain.
b. Is there visual evidence (from a residual plot) that second-order model may be more appropriate for predicting household food consumption? Explain.
c. comment on the assumption of constant error variance, using a residual plot. Does it appear to be satisfied?
d. Are there any outliers in the data? If so, identify them.
e. Based on a graph of the residuals, does the assumption of normal errors appear to be reasonably satisfied? Explain.
Questions & Answers
QUESTION:
Household food consumption. The data in the table on the next page were collected for a random sample of 26 households in Washington, D.C. An economist wants to relate household food consumption, y, to household income, \(x_1\), and household size, \(x_2\), with the first-order model
\(E(y)=\beta_{0}+\beta_{1} x_{1}+\beta_{2} x_{2}\)
a. Fit the model to the data. Do you detect any signs of multicollinearity in the data? Explain.
b. Is there visual evidence (from a residual plot) that second-order model may be more appropriate for predicting household food consumption? Explain.
c. comment on the assumption of constant error variance, using a residual plot. Does it appear to be satisfied?
d. Are there any outliers in the data? If so, identify them.
e. Based on a graph of the residuals, does the assumption of normal errors appear to be reasonably satisfied? Explain.
ANSWER:Step 1 of 11
(a)
Use MINITAB to fit the model.
MINITAB procedure:
Step 1: Choose Stat > Regression > Regression.