Use Excel to develop a regression model for the Consumer Food Database (using the "Excel Databases.xls" file on Blackboard) to p
redict Annual Food Spending by Annual Household Income for those living in the Metro area only. Suppose a household in the metro area has an annual income of $60,000. Predict how much they spend on food per year. Write your answer as a number (do not include the $ sign or comma) and round to 2 decimal places.
1 answer:
Answer:
Step 1 : Create an Indicator Variable for metro cities using formula mentioned in formula bar.
Step 2: Filter the Data on Metro cities i.e. select only those cities with Metro Indicator 1.
Step 3: Paste this filtered data to a new sheet.
Step 4: Go to Data - Data Analysis - Regression
Step 5: Enter the range of Y-variable and X-variable as shown. Select Output range and click on residuals. It will give you Output Summary and the Predicted Values along with Residuals
Please see attachment
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