Conclusion

This project determined if the economic recession significantly affects necessary expenditure on food, as measured in differences in spending on groceries due to inflation. To do so, we performed a regression to test our hypotheses. Based on our results, our r² values for both years did not show a significant relationship between actual spending on groceries and income. This suggests that other factors may have played a role in expenditure. Furthermore, our p-value was very small compared to our set alpha value, which means we reject our null hypothesis. Thus, change in consumers’ expenditure on food necessities may be related to the economic recession, both for our sample and the larger population.