Determine if there is a linear relationship between ANNUAL HOUSING EXPENSES and ANNUAL HOUSEHOLD DONATIONS. More precisely, you want to determine if ANNUAL HOUSEHOLD DONATIONS depends on ANNUAL HOUSING EXPENSES.To reach an answer to this question, you will conduct a simple linear regression analysis using your own Housing and Donations data file. This analysis includes a scatter diagram and a table of residuals, along with the ANOVA and regression output tables. You’ll also need a plot to show normality. You’ll use a 95% Confidence Level, i.e. 5% significance level. You can generate the output in one of these two ways:

Option 1: Use PH-Stat>Regression>Simple Linear Regression and select all options EXCEPT the Durbin Watson Statistic.Then, use PH-Stat>Probability>Normal Probability Plot to plot the residuals.

Option 2: Use the Excel Data Analysis Tool> Regression; you will then need to generate a scatter diagram and residual plot using the Chart tools in Excel

Note well: If you must choose Option 2 and you don’t already have the Data Analysis Tool Pak in your version of Excel, you will need to add it. Typically, this can be done in Excel by going to File/Options/Add-ins/Selecting Analysis Toolpak and clicking OK.

Output to submit: One Excel Workbook that includes worksheets with the following information:

Regression Output (Regression Statistics, ANOVA, and Coefficients tables; table of residuals)
Scatter diagram
Plot of residuals vs. the independent variable
Plot to show normality of residuals