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[20 marks] The following exercise seeks to identify which of the 16 unlabelled independent variables (denoted as V1. ... V16) can affect the amount lost
[20 marks] The following exercise seeks to identify which of the 16 unlabelled independent variables (denoted as V1. ... V16) can affect the amount lost in a data breach of bank accounts (being your dependent variable). The 16 unlabelled variables are account information while the variable amount is Amount in actual dollars lost from the breach. Total number of transactions in the dataset is 284,807 transactions. In deriving the predictive model, the following regression table was generated: Table 2. Multiple linear regression analysis for N= 284,807 customer data B S.E p-value Lower 9536 Upper 95% (Intercept) 88 34961925 0.226524 390 0235 0.000* ** 87.90564 88.7936 V1 -29.0777736 0.115651 -251.428 0.000** * -29 3044 -28.8511 V2 -80.4913531 0.137179 -586.763 0.000** * -80.7602 -80.2225 -34.78666012 0.149397 -232.847 0.000* * * -35.0795 -34.4938 VA 1744143178 0.15999 109.016 0.000*** 17.12786 17.75501 V5 -70.01318432 0.164119 -426.601 0.000* * * -70 3349 -69.6915 V6 40 54823137 0.170029 238.4788 0.000* ** 40 21498 40 88148 V7 80 32984768 0.18311 438.6971 0.000* ** 79.97096 80.68874 V8 -21.58671412 0.189663 -113.816 0.000* ** -21.9584 -21.215 V9 -10.07317637 0.206188 -48.8544 0.000** * -10.4773 -9.66905 V10 -23.31609681 0.20804 -112.075 0.000* ** -23.7238 -22.9083 V11 0.025478997 0.221927 0.114808 0.908598 -0.40949 0.460451 V12 -2 388504082 0.226705 -10.5357 0.000* * * -2.83284 -1.94417 V13 1.330274617 0.2276 5.844796 0.000* * * 0.884185 1.776364 V14 8.806473417 0.236308 37.26686 0.000* *# B.343315 9.269631 V15 -0.815915651 0.247482 -3.29687 0.000978*** -1.30097 -0.33086If the following variables have the following values, what then is the predicted amount that will be possibly lost in the breach? V1 - 2.25 V2 - -3.75 V3 - 5.00 V4 - -2.00 V5 - -10 V6 - 2.50 V7 - 10 V8 - 25.75 V9 - 10 V10 - 20 V11 - -3 V12 - -2 V13 - 5 V14 - 10 V15 - 2.75 V16 - -5 Hint: Show your solution in MS Excel
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