B C 0 Q R S Suppose your work for an independent agency that conducts research on conumer attitudes and behaviors. You are approached by a client that asks you to conduct an investigation of consumer characteristics that can be used to predict the amount chargedt by credit card users. The data below were collected from a random sample of 50 consumers and includes annual income, household size, and annual credit card charge amount. Use the data to answer the questions below. Income HouseholdSize |AmountCharged Income|HouseholdSize AmountCharged Organize your Excel output in the three worksheets provided. $54,000 $4,016 $54,000 6 $5,573 $30,000 $3.159 $30,000 $2.583 1 Does the scatterplot of Household Size and Amount Charged suggest a $32,000 $5,100 $48,000 $3,868 linear relationship? Yes or No. Place the scatter plot in Worksheet 1. $50,000 $4,742 $34,000 $3.586 $31,000 $1,864 $67,000 $5,037 2 What is the correlation coefficient for Household Size and Amount $55,000 $4,070 $50,000 $3.605 IOWA NONNOANW Charged? Show your answer to three decimal places. Place your Excel $37,000 $2,731 $67,000 $5,345 $40,000 $3,348 $55,000 $5,370 3 For the simple linear regression model that includes Household Size, $66,000 $4,764 $52,000 $3,890 what is the coefficient of determination? Show your answer to three $51,000 $4.110 $62,000 $4,705 decimal places. Place your Excel work in Worksheet 1. $25,000 $4,208 $64,000 $4,157 $48,000 $4,219 $22,000 $3,579 4 For the simple linear regression model that includes Household Size, $27,000 $2.477 $29,000 $3,890 $33,000 A U A N N A N O Q A J N A W N O NOONA ON what is the predicted annual Amount Charged for a household with 5 $2.514 $39,000 $2,972 people? Show your answer to two decimal places. Place your Excel work $65,000 $4,214 $35,000 $3,121 $63,000 $4,965 $39,000 $4,183 5 Does the scatterplot of Income and Amount Charged suggest a linear $42,000 $4.412 $54,000 $3,730 relationship? Yes or No. Place the scatter plot in Worksheet 2. $21,000 IN-WOMENDAWNA $2,448 $23,000 $4,127 $44,000 $2,995 $27,000 $2,921 6 What is the correlation coefficient for Income and Amount Charged? $37,000 $4.171 $26,000 $4,603 Show your answer to three decimal places. Place your Excel work in $62,000 $5,678 $61,000 $4.273 $21,000 $3,623 $30,000 $3.067 7 For the simple linear regression model that includes Income, what is the $55,000 $5,301 $22,000 $3,074 coefficient of determination? Show your answer to three decimal places. $42,000 $3,020 $46,000 $4.820 Place your Excel work in Worksheet 2 $41,000 $4,828 $66,000 $5.149 8 For the simple linear regression model that includes Income, what is the predicted annual Amount Charged for an income of $48,000? Show your answer to two decimal places. Place your Excel work in Worksheet 9 Which simple linear model is the best predictor of annual amount Charged? (That is, the one using Household Size or the one using 10 Generate a multiple linear regression model with both Household Size and Income included. Place your Excel work in Worksheet 3. What is the predicted annual amount charged with an income of $55,000 and a Household size of 7? Show your answer to two decimal places. 11 Considering the multiple linear regression model with both Household Size and Income, are both independent variables statistically significant? Main Sheet 1 Analysis w Household Size 2 Analysis w Income 3 Analysis w Income & Household +