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An analyst at a credit card bank is looking at the relationship between customers' charges to the bank's card in two successive months, He selects
An analyst at a credit card bank is looking at the relationship between customers' charges to the bank's card in two successive months, He selects 20 random customers, regresses charges in March ($) on charges in February ($), and finds an R* of 87%. He concludes that the model is a useful one for predicting one month's charges from the other. Examine the accompanying data and comment on his conclusions, Click the icon to view the data. Select the correct choice below and fill in any answer boxes to complete your choice. O A. The analyst's conclusion is correct. OB. There are two outliers that decrease R". Without those two points, R" increases from 87% to %%. The analyst should set aside those two customers and use the new model. (Round to the nearest integer as needed.) ". There are two outliers that inflate R". Without those two points, R" drops from 87% to |%%. The analyst should set aside those two customers and refit the model. (Round to the nearest integer as needed.) O D. The analyst's conclusion is only somewhat correct. The linear model can be used, but only to predict March charges using February charges\fData from a small bookstore are shown in the accompanying table. What is the value of R- and what does it mean? Click the icon to view the data table. -X What is the value of R?? Data table R
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