Personal Spending and Personal Income

question 179

Essay

Personal Spending and Personal Income
Is personal spending linearly related to orders for durable goods and personal income? A recent study reported the amounts of personal spending (in trillions of dollars), amount spent on durable goods (in billions of dollars), and personal income (in trillions of dollars). A statistical package was used to fit a linear regression model, producing the output below. R² = 95.9% R²(adj) = 95.0%, s = 0.0144 with 12 - 3 = 9 df.
-Refer to Personal Spending and Personal Income. Use the computer output shown above to test the hypotheses vs. at the 5% significance level. What is your conclusion?

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Definitions:

ECAT

A system or tool used for electronic cataloging, often in the context of parts and components for machinery or vehicles, facilitating easy identification and selection.

Accelerator Position

A measurement of the angle or level to which the accelerator pedal is depressed, influencing vehicle speed.

Analog Potentiometer

An electrical component that varies resistance in a circuit to control a device, often used to adjust levels such as volume.

Hall-effect TPS

A throttle position sensor using the Hall-effect principle to measure the position of the throttle in an engine, translating the throttle's position into an electrical signal.