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A masters student was to determine the relationship between income and expenditure among public civil servants. She obtained the data below for a sample of 10 employees. Observations 1 2 3 4 5 6 7 8 9 10 Income (X) (‘000`) (Ksh) 41 65 50 57 96 94 110 30 79 65 Expenditure (Y) (‘000`)(Ksh) 44 60 39 51 80 68 84 34 55 48 (i) State the null and alternative hypothesis of this study. (2mks) (ii) Find the relationship between income and expenditure at 5% significance level. (4mks) (iii) Establish a line of best fit (linear regression) of Y on X (4mks) (iv) Predict a salary of a civil servant whose expenditure is 73,500. (2mks)
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