Assessment instructions: Regression is a statistical tool used to understand and quantify the relation between two or more variables. Regressions range from simple models to overly complex equations. The two primary uses for regression in business are forecasting and optimization. In addition to helping managers predict such things as future demand for their products, regression analysis helps fine-tune manufacturing and delivery processes. This assignment focuses on applying regression methods. Students are given a case (next page) and a data set (data for each student on excel sheet available on Moodle) to analyse and make a managerial report. This assessment requires students to focus on the key learnings from the lectures on linear and multiple regression and how they apply to real-life situations. Case problem: Consumer Research, Inc. Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes and behaviours 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 20 consumers. Managerial Report: Use the regression technique, students need to include the following in their report. 1) 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. 2) Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings. 3) Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful? Citation and referencing: Students should follow the APA referencing style to construct the Reference List and in-text citations

Income ($1000s)	Household Size	Amount Charged ($)
41	3	4742
40	3	1864
33	3	4070
32	3	2731
31	3	3348
25	2	4764
48	1	4110
27	2	4208
33	2	4219
51	3	4110
25	4	4208
48	4	4219
27	1	2477
33	2	2514
65	3	4214
63	4	4965
42	6	4412
37	2	2448
62	1	2995
21	5	4171