A student used multiple regression analysis to study how family spending (Y) is influenced by income (X1), family size (X2), and additions to savings (X3). The variables Y, X1, and X3 are measured in thousands of dollars. The following results were obtained. 
a.Write out the estimated regression equation for the relationship between the variables.
b.Compute R2. What can you say about the strength of this relationship?
c.Carry out a test of whether Y is significantly related to the independent variables. Use a .05 level of significance.
d.Carry out a test to see if X3 and Y are significantly related. Use a .05 level of significance.
Definitions:
Price-Earnings Ratio
A valuation metric for a stock, calculated by dividing the current market price of the stock by its earnings per share.
Incremental Value
The additional or extra value generated by making a specific business decision, considered when evaluating multiple options.
Earnings per Share
A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.
Merger Premium
The additional cost or amount by which a company's purchase price exceeds the pre-merger valuation of the target company.
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