Calculate the monthly income


Response to the following question:

Super Markets, Inc. is considering expanding into the Scottsdale, Arizona, area. Ms. LuannMiller, Director of Planning, must present an analysis of the proposed expansion to the operating committee of the board of directors. As a part of her proposal, she needs to include information on the amount people in the region spend per month for grocery items. She would also like to include information on the relationship between the amount spent for grocery items and income. She gathered the following sample information.

 

Monthly          Monthly                      Monthly          Monthly

Household     Amount          Income Household    Amount          Income

1                      $555                $4,388             21        $ 913               $6,688

2                      489                  4,558               22           918               6,752

3                      458                  4,793               23           710               6,837

4                      613                  4,856               24        1,083               7,242

5                      647                  4,856               25           937               7,263

6                      661                  4,899               26           839               7,540

7                      662                  4,899               27        1,030               8,009

8                      675                  5,091               28        1,065               '8,094

9                      549                  5,133               29        1,069               8,264

10                    606                 5,304               30        1,064               8,392

11                    668                 5,304               31        1,015               8,414

12                    740                  5,304               32        1,148               8,882

13                    592                  5,346               33        1,125               8,925

14                    720                  5,495               34        1,090               8,989

15                    680                  5,581               35        1,208               9,053

16                    540                  5,730               36        1,217               9,138

17                    693                  5,943               37        1,140               9,329

18                    541                  5,943               38        1,265               9,649

19                    673                  6,156               39        1,206               9,862

20                    676                  6,603               40        1,145               9,883

 

a. Let the amount spent be the dependent variable and monthly income the independent variable. Create a scatter diagram, using a software package.

b. Determine the regression equation. Interpret the slope value.

c. Determine the coefficient of correlation. Can you conclude that it is greater than 0?

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Engineering Mathematics: Calculate the monthly income
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