The Owner of a Bakery Wants to Analyze the Relationship

question 68

Essay

The owner of a bakery wants to analyze the relationship between the expenditure of a customer and the customer's income.A sample of 5 customers is taken and the following information was obtained.

The least squares estimated line is

= 4.348 + 0.0826 X.
a.Obtain a measure of how well the estimated regression line fits the data.
b.You want to test to see if there is a significant relationship between expenditure and income at the 5% level of significance.Be sure to state the null and alternative hypotheses.
c.Construct a 95% confidence interval estimate for the average expenditure for all customers with an income of $20,000.
d.Construct a 95% confidence interval estimate for the expenditure of one customer whose income is $20,000.

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Definitions:

Sexual harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature that affects an individual's employment, interferes with work performance, or creates a hostile work environment.

Disparate impact

A theory in anti-discrimination law that occurs when policies, practices, rules, or other systems that appear to be neutral result in a disproportionate impact on protected groups.

Disparate treatment

A legal doctrine under U.S. employment law that refers to intentional discrimination against individuals on the basis of race, color, religion, sex, or national origin.

Employment practices

Policies, procedures, and actions related to the management of employees within an organization, including hiring, training, promotion, and termination.