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2. (4 points) - Street Research Inc. was not satisfied with the R-square results you obtained for the estimated linear regression equation you obtained in

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2. (4 points) - Street Research Inc. was not satisfied with the R-square results you obtained for the estimated linear regression equation you obtained in Problem 1. So, in addition to the annual household income (X), they want you to consider the household annual savings (X) as a dependent variable. The Problem \#2 sheet in "Exam \#3" Excel file provides the data for X2 obtained from consumers \#1 through \#13. a. (0.5 points) - Create a Scatter Chart for these data with actual annual amount charged (Y) on y-axis and annual household annual savings (X) on X-axis, including axis title and chart title. Does a linear relationship appear to be reasonable? b. (0.5 point) - Use the Excel's Regression Tool and develop the estimated linear regression equation between actual annual amount charged (Y) and household annual savings (X). Discuss the Rsquare value obtained, present the values for bs,b4 and write down the equation: Ya=b6+b1Xz. c. (1 point) - Use the Excel's Regression Tool and develop the estimated multiple regression equation between annual amount charged (Y), annual household income (X) and household annual savings (X). Discuss the R-square value obtained, present the values for be,b1 and b2 and write down the equation: Ym=b0+b1X1+ b, X. d. (1 point) - Based on the R-square values obtained for Problem \#1 (c) and topics (b) and (c) of this problem \#2, which mathematical model would you select to estimate the annual amount charged (Y)? Discuss in detail your justification. e. (1 point) - Use the estimated multiple regression equation Yz=bn+ b1X1+b2X2 obtained in topic (d), apply the corresponding X1 and X2 values for consumer \#10, calculate the estimated annual amount charged (Yw) and calculate the error. UPLOAD THE EXCEL SPREADSHEET FOR ALL CALCULATION IN ORDER TO GET POINTS FOR THIS PROBLEM. \begin{tabular}{|c|c|c|c|} Consumer \# & X1: \$ annual income in thousands & X2: \$ annual savings in thousands & Y: \$ annual credit card charges \\ \hline 1 & 50 & 2.0 & 1,455 \\ \hline 2 & 63 & 1.7 & 2,678 \\ \hline 3 & 74 & 2.9 & 3,456 \\ \hline 4 & 88 & 3.9 & 4,220 \\ \hline 5 & 95 & 4.5 & 4,100 \\ \hline 6 & 98 & 3.9 & 4,680 \\ \hline 7 & 99 & 3.7 & 5,190 \\ \hline 8 & 105 & 2.8 & 8,090 \\ \hline 9 & 109 & 2.5 & 10,021 \\ \hline 10 & 115 & 2.4 & 9,800 \\ \hline 11 & 78 & 4.5 & 4,590 \\ \hline 12 & 82 & 3.7 & 2,490 \\ \hline 13 & 45 & 2.5 & 1,345 \\ \hline \end{tabular}

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