What determines how much money a family spends on holiday? In a survey, a sample of 30 familieswere asked to keep a record of their spending during a one-week holiday and report their totalspending at the end of the week. The researchers hypothesised that wealthier families tend to spendmore, and that families who tend to spend most of the time in one town tend to spend less thanthose who travel around to see sight at several different places. Therefore, the respondents wereasked to report the net monthly income of the family as well as the number of different settlements(villages, towns, and cities) that they visited during the week. A multiple linear regression modelrevealed that both income and the amount of travelling are significantly related to total spending.The researchers, however, also hypothesised that the two independent variables may interact. Theprintout below shows the SPSS output for fitting an interaction model to the data.<Model1Model1R.866ªModel1Model SummaryRegressionResidualR Square.750Adjusted RSquarea. Predictors: (Constant), Income * Travelling, Income,TravellingSum ofSquares49752742.7016554678.2766307420.97.722ANOVAdf(Constant)IncomeTravellingIncome Travellinga. Dependent Variable: Total spendingStd. Error ofthe Estimate797.94632629Totala. Dependent Variable: Total spendingb. Predictors: (Constant), Income Travelling, Income, TravellingMean Square16584247.57636718.395CoefficientsUnstandardized CoefficientsBStd. Error449.847254-292.175.2051564.227.460366.722.103F26.046StandardizedCoefficientsBeta.143-.3411.034tSig..000b.288.552-.7971.986Sig..776.586.433.058Does the analysis provide evidence at the .05 level of significance that family income and the amountof travelling interact? State your conclusion and explain how you arrived at that conclusion. If youfind evidence for an interaction, describe what this interaction means, i.e. how family income andthe amount of travelling jointly affect the total weekly spending of families.

It is needed to test, whether there is significant interaction effect between family income and the…

What determines how much money a family spends on holiday? In a survey, a sample of 30 families were asked to keep a record of their spending during a one-week holiday and report their total spending at the end of the week. The researchers hypothesised that wealthier families tend to spend more, and that families who tend to spend most of the time in one town tend to spend less than those who travel around to see sight at several different places. Therefore, the respondents were asked to report the net monthly income of the family as well as the number of different settlements (villages, towns, and cities) that they visited during the week. A multiple linear regression model revealed that both income and the amount of travelling are significantly related to total spending. The researchers, however, also hypothesised that the two independent variables may interact. The printout below shows the SPSS output for fitting an interaction model to the data. < Model 1 Model R .866ª Model Model Summary a. Predictors: (Constant), Income Travelling Regression Residual R Square .750 Adjusted R Square Sum of Squares 49752742.70 Travelling, Income, 16554678.27 66307420.97 .722 ANOVA df (Constant) Income Travelling Income Travelling a. Dependent Variable: Total spending 3 Std. Error of the Estimate 797.946 26 29 Total a. Dependent Variable: Total spending b. Predictors: (Constant), Income Travelling, Income, Travelling * Mean Square 16584247.57 636718.395 Coefficients Unstandardized Coefficients B Std. Error 449.847 254 -292.175 .205 1564.227 .460 366.722 .103 F 26.046 Standardized Coefficients Beta .143 -.341 1.034 t Sig. .000b 288 .552 -.797 1.986 Sig. .776 .586 .433 .058 Does the analysis provide evidence at the .05 level of significance that family income and the amount of travelling interact? State your conclusion and explain how you arrived at that conclusion. If you find evidence for an interaction, describe what this interaction means, i.e. how family income and the amount of travelling jointly affect the total weekly spending of families.