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In November 2001, Starbucks launched its prepaid (debit) Starbucks Card. The card, which holds between $5 and 5500, can be used at virtually any Starbucks

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In November 2001, Starbucks launched its prepaid (debit) Starbucks Card. The card, which holds between $5 and 5500, can be used at virtually any Starbucks location. The Starbucks Card has surpassed the $2.5 billion mark for total activations and reloads since its introduction. Starbucks management wants to study the reasons why some people purchase debit cards with higher prepaid amounts than do other people. A study of 25 randomly selected prepaid. card purchasers is taken. Respondents are asked the amount of the prepaid card. the customer's age, the number of days per month the customer makes a purchase at Starbucks, the number of cups of coffee the customer drinks per day, and the customer's income. Multiple regression analysis has taken and the result is shown below. ANOVA df 55 MS F Sig Regression 4 30175.04 754306 Residual 20 9810.95 490.54 Total 24 Coeicients Standard Enor tStot Pvalue Intercept 63182 22.49 -3.?2 0.00133 Age [123 (LS? [141 0.6851 Days per month at Starbucs 1.18 1.4? 0.307 0.429 Cups of coffee per day 1.42 2.63 C154 C159 Income 51,000) 2.41 0.359 ............ a. Develop a multiple regression model to study how well the amount of the prepaid card can be predicted byAge, Days per month at Starbucks, Cups of coffee and Income b. Compute the coefficient of determination (R2) and adjusted Rzand explain the result c. Develop the hypotheses and Test the overall signicance. interpret the result d. Develop the hypotheses and test the significance of variable Income. Interpret the result

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