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I conducted a survey asking people of various income groups about their annual expenditure under various consumption brackets such as food, clothing, housing etc. I then calculated the amount spent by people of different income brackets in these categories as a percentage of their total income. Now, to plot this data and find the best fit line which type of regression analysis should I use. Also are there some other good statistical tools that I can use for exploiting this data?

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    $\begingroup$ Could you please elaborate question and what is your objective? Hows you're data look like? (sorry I didnt find link to add comment) $\endgroup$ – love-stats Sep 28 '11 at 0:20
  • $\begingroup$ I took some liberty in reassigning tags, while I feel your old ones had nothing to do with the question, the ones I assigned could be off the mark as well (so feel free to change them). $\endgroup$ – Andy W Sep 28 '11 at 1:08
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Your charts will depend on what story you are interested in. Are you interested in amounts spent (on average the rich usually spend more on most items than the poor do)? Or are you interested in the shares of expenditure (or income) going on different items? Can you avoid your charts getting too cluttered? Do you intend to adjust your numbers for household size? Or household type, especially whether there are children?

You might get some ideas from the UK publication Living Costs and Food Survey. You will find that linear regression of expenditure on income is often not particularly appropriate.

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  • $\begingroup$ @user152509 I have collected data from survey questionnaires which ask the respondents their annual income bracket and their expenditure in various categories such as food, clothing etc. Now I want to obtain a plot with various income categories on x-axis and percentage of annual income spent on a particular category(such as food) on y-axis. My plots show that people of lower income bracket generally tend to spend a greater percentage of their income on basic necessities such as food. Now, I want to obtain curves for this data. Can you suggest which type of regression is used in such cases? $\endgroup$ – pranshu k Sep 28 '11 at 12:33
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I don't think regression will serve your purpose. You seem to want to show how expenditure breakdowns differ among people of different income categories. Imagine you have a table with, say, 5 rows representing the income groups and 6 columns representing types of expenditures. Within each cell would be a dollar amount. You'd want to show where there are disproportionalities from row to row. Do you see what statistical test would be applicable there?

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