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A company conducted a study to determine the amount charged on credit cards. The independent variables used were household size and income (in thousands). Fifty
A company conducted a study to determine the amount charged on credit cards. The independent variables used were household size and income (in thousands). Fifty households were studied and the results of the multiple regression analysis are given.
Regression
Variables Entered/Removeda | |||
Model | Variables Entered | Variables Removed | Method |
1 | HouseholdSize | . | Stepwise (Criteria: Probability-of-F-to-enter <= .050, Probability-of-F-to-remove >= .100). |
2 | Income | . | Stepwise (Criteria: Probability-of-F-to-enter <= .050, Probability-of-F-to-remove >= .100). |
a. Dependent Variable: AmtCharged |
Model Summary | ||||
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate |
1 | .753a | .567 | .558 | 620.793 |
2 | .909b | .826 | .818 | 398.091 |
a. Predictors: (Constant), HouseholdSize | ||||
b. Predictors: (Constant), HouseholdSize, Income |
ANOVAa | ||||||
Model | Sum of Squares | df | Mean Square | F | Sig. | |
1 | Regression | 24200717.481 | 1 | 24200717.481 | 62.796 | .000b |
Residual | 18498431.339 | 48 | 385383.986 | |||
Total | 42699148.820 | 49 | ||||
2 | Regression | 35250755.672 | 2 | 17625377.836 | 111.218 | .000c |
Residual | 7448393.148 | 47 | 158476.450 | |||
Total | 42699148.820 | 49 | ||||
a. Dependent Variable: AmtCharged | ||||||
b. Predictors: (Constant), HouseholdSize | ||||||
c. Predictors: (Constant), HouseholdSize, Income |
Coefficientsa | ||||||
Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||
B | Std. Error | Beta | ||||
1 | (Constant) | 2581.941 | 195.263 | 13.223 | .000 | |
HouseholdSize | 404.128 | 50.998 | .753 | 7.924 | .000 | |
2 | (Constant) | 1304.905 | 197.655 | 6.602 | .000 | |
HouseholdSize | 356.296 | 33.201 | .664 | 10.732 | .000 | |
Income | 33.133 | 3.968 | .516 | 8.350 | .000 | |
a. Dependent Variable: AmtCharged |
Excluded Variablesa | ||||||
Model | Beta In | t | Sig. | Partial Correlation | Collinearity Statistics | |
Tolerance | ||||||
1 | Income | .516b | 8.350 | .000 | .773 | .970 |
a. Dependent Variable: AmtCharged | ||||||
b. Predictors in the Model: (Constant), HouseholdSize | ||||||
What is the regression equation?
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