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QAB105 Quantitative Analysis For Business

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Question:

Income can have significant effects on people’s spending patterns. Research studies have revealed that consumer expenditure is influenced by various factors such as their income, gender, age and level of education. In order to investigate the relationship between food expenditure and take home pay in Australia, a researcher plans to survey a sample of individuals across the country.

Briefly explain

(a) What type of survey method could the researcher use and why?

(b) What sampling method could the researcher use to select his/her sample and why?

(c) What kind of issues the researcher may face in this data collection?Second, the researcher wishes to investigate the association between the two variables.

(a) Explain what could be the independent variable (X) and the dependent variable (Y).

(b) Using an appropriate plot, investigate the relationship between weekly take-home pay and weekly food expenditure. On the same plot, fit a linear trend line.

(c) Using Excel, compute a numerical summary measure to measure the strength and the direction of the linear relationship between weekly take-home pay and weekly food expenditure. Interpret this value.

(d) Display the regression summary table. Using the summary results, estimate the Least Squares Regression equation and interpret the intercept and slope coefficient estimates of the estimated linear regression model.

(e) Using the regression summary output table, conduct a hypothesis testing to conclude whether there is a linear relationship between weekly take-home pay and weekly food expenditure. Use .

Based on your answers above, write a summary report about the findings of the study conducted by this researcher (maximum 200 words).

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