Name: VINCULADO, STEPHANIE CLAIRE V.

Offer Code: 6278 Score:

Degree Program & Year: BS PSYCH – 2 Schedule: MWF (8:30-9:30) Date: 12-12-2020

Assignment #14 – Simple Linear Regression Analysis

Instruction: Perform the hypothesis test by showing the 9-steps process.

Problem Situation:

A randomly chosen sample of 20 families in Casa Mira Linao, Talisay City, Cebu revealed the following
figures for family size and the amount spent on food per week.
A. Compute the coefficient of correlation.

B. Calculate the coefficient of determination.

r2 = 0.86
 C. Do larger families spend more on food? – YES
D. Is family size a predictor of weekly food family expenditure? Evaluate at a = 0.05.
Yes, it can be said that at significance level of 0.05, family size is a predictor of weekly food family expenditure

Solution:

Step 1: Problem statement.

Is family size a predictor of weekly food family expenditure?

Step 2: State the hypotheses and identify the claim

H0: The size of the family is not an indicator of the amount that a family spends on food each week.

H1: The size of the family is an indicator of the amount that a family spends on food each week. -claim

Step 3: Choice of test statistic and significance level

Test Statistic: Simple Linear Regression

Significance Level: α = 0.05

Step 4: Computation
O
Step 5: Decision Rule and Finding

Decision Rule: Reject H0 if level of significance (a) > p-value

Finding: a (0.05) > p-value (0.000)

Step 6: Decision

Reject the null hypothesis

Correct Decision

Step 7: Interpretation and analysis

For a randomly selected group of families in Casa Mira Linao, Talisay City, Cebu, it can be said that the
family size is an indicator of the amount that a family spends on food each week. Moreover, (y)=1469.39
+ 821.91 (family size), the regression equation amount spent on food each week echoes the idea that the
greater the size of the family the more expense. On the other hand, there is a lesser expense on food each
week if the family size is smaller.

Step 8: Implications

As the size of a household increases, the amount of money spent on foods also increases. We can also
mention the the quality and prices of the variety of foods that a family tends to buy as an implication.
Another thing is how much each member of the family eats.

Step 9: Conclusion

It can be said that there is sufficient evidence to support the claim that family size is an indicator of the
amount spent on food each week. We can further say that the expenditure on food tends to be higher
when the size of the family is larger as compared to when it is smaller.