Personal Spending and Personal Income

question 38

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 at the 5% significance level. What is your conclusion?

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Definitions:

Labor Unions

Organizations representing workers in many industries, formed to protect and advance their rights and interests through collective bargaining.

Minimum Wages

The lowest legal hourly wage that employers can pay their employees.

Self-employed

The status of working for oneself as a freelancer or owner of a business rather than being employed by someone else.

Well-educated

Possessing a high level of education and knowledge, typically achieved through formal schooling and continuous learning.