3. Develop an estimated regression equation with annual income and household size as the independent variables. discuss the findings

Problem Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes and behaviors for a variety of firms. In one study, a client asked for an investigation of consumer characteristics that can be used to predict the amount charged by credit card users. Data were collected on annual income, household size, and annual credit card charges for a sample of 50 consumers. The following data are contained in the file named Consumer. Income Household ($1,000s) Size 54 3 30 2 32 4 50 31 55 2 37 1 40 2 66 4 51 3 25 3 48 4 27 1 33 2 65 3 63 4 42 6 21 2. 44 1 37 5 62 6 21 3 55 7. 42 2 41 7 Amount Charged ($) 4016 3159 5100 4742 1864 4070 2731 3348 4764 4110 4208 4219 2477 2514 4214 4965 4412 2448 2995 4171 5678 3623 5301 3020 4828 Income Household ($1.000s) Size 54 6 30 1 48 2 34 5 67 4 50 2 67 5 55 52 2 62 3 2 22 3 29 39 2 35 1 39 4 54 3 23 27 2 26 7 61 2 30 2 22 4 46 5 66 4 Amount Charged ($) 5573 2583 3866 3586 5037 3605 5345 5370 3890 4705 4157 3579 3890 2972 3121 4183 3730 4127 2921 4603 4273 3067 3074 4820 5149 Managerial Report Managerial Report 1. Use methods of descriptive statistics to summarize the data. Comment on the findings 2. Develop estimated regression equations, first using annual income as the independent variable and then using household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss your findings. 3. Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings. 4. What is the predicted annual credit card charge for a three-person household with an annual income of $40,000? 5. Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful