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Muscat Bank credit card division has a database of information provided by its customers when the customers apply for credit cards (Table 1). An analyst
Muscat Bank credit card division has a database of information provided by its customers when the customers apply for credit cards (Table 1). An analyst created a multiple regression model for which the dependent variable in the model is credit card annual charges accrued by a customer (Y), and the independent variables are the customer's annual income (X1), work experience (X2), and age (X3). Table-1 Annual Income Work Annual (OMR) Experience Age Charges(OMR) 224 3 48 25 176 4 36 15 247 6 34 27 299 8 35 16 284 5 31 39 189 7 23 21 294 3 32 30 274 8 35 23 276 4 30 11 a) Using standard computer software formulate an estimated multiple regression equation that includes customer's annual income (X1), work experience (X2), and age (X3), as independent variable and credit card charges accrued by a customer(Y) as dependent variable. (5 Marks) b) Is the overall regression statistically significant at the 0.05 level of significance? If so, then test whether each of the regression parameters Bo, B1, and B2 is equal to zero at a 0.05 level of significance. (5 Marks) c) Write a report for interpretations of the estimated regression parameters results. (5 Marks) d) Using the multiple linear regression model you developed in part a, what is the predicted credit card charges for annual income of OMR 300, work experience of 10 years and age is 35 years
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