Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A credit card company is trying to understand and even predict annual charges that a customer will make on their cards using 5 variables: annual

A credit card company is trying to understand and even predict annual charges that a customer will make on their cards using 5 variables: annual income (in $1000), household size, years of post-high school education (labeled simply "Education"), hours per week watching television (labeled "TV Hours") and age of the primary card holder.

They collect data on 100 randomly selected customers and measure the variables described above. They then perform a multiple regression analysis and find the results shown in the questions below.

Important Note: While the scenario above applies to all of the questions below, the output shown in different questions may change from question to question. Please be careful that you use the appropriate output for each question.

For this question, use the following multiple regression output (which may differ from the output in other questions, even though the variables are the same).

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.534
R Square 0.285
Adjusted R Square 0.247
Standard Error 4791.473
Observations 100
ANOVA
df SS MS F Significance F
Regression 5 859571711.8 1.72E+08 7.488 5.940E-06
Residual 94 2158071843 22958211
Total 99 3017643555
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 3637.638 2700.353 1.347 0.1812 -1723.976 8999.252
Annual Income ($1000) 108.876 19.008 5.728 1.216E-07 71.135 146.617
Household Size 285.883 218.539 1.308 0.1940 -148.032 719.797
Education -200.021 320.557 -0.624 0.5342 -836.494 436.451
TV Hours -3.683 28.451 -0.129 0.8973 -60.175 52.808
Age -10.82 46.632 -0.232 0.817 -103.41 81.769

Develop the estimated regression equation relating all of the independent variables included in the data to annual charges.If required, round your answer to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

Estimated Amount Charged = + *Annual Income ($1000s)+ *Household Size+ *Education+ *TV+ *Age

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus For Scientists And Engineers Early Transcendentals

Authors: William L Briggs, Bernard Gillett, Bill L Briggs, Lyle Cochran

1st Edition

0321849213, 9780321849212

More Books

Students also viewed these Mathematics questions

Question

How many moles of He are in 13 g of He?

Answered: 1 week ago