Part IV: The Bank of America is expanding its banking branch locations on the big island of Hawaii. Just as it has done in the mainland 48 states, it is choosing town locations for expansion based upon five characteristics (variables) of a candidate town's population: 1. median age (years) 2 . median years of education 3. median household income (dollars) 4 . median home value (dollars) 5. median household wealth (dollars). Years of experience have proven to the Bank of America that these 5 variables predict the average bank balance per person in the town. And, of course, The Bank of America wants to expand into the towns that are likely to have the highest bank balances per person. The Regression Analysis Output Table here below shows the way The Bank of America uses regression analysis to predict the average bank balance per person in a town. On the next page answer the five questions pertaining to this problem. REGRESSION ANALYSIS OUTPUT TABLE Regression Statistics Multiple R 0.973 R-squared 0.983 Adjusted R-Squared 0.944 Standard Error 2055 Observations 102 Regression Formula Coefficients Std error t Stat P-Value Lower 95% Upper 95% Intercept -10710.640 4260.976 -2.51 0.01300 -19168 -2252 318.664 60.986 5.225 0.00060 197 439 Age Education 621.860 318.95 1.9496 0.04500 11 1254 0.04078 0.00050 0.0653 0.2272 Income 0.146 3.588 Home Value 0.009 0.011 0.83194 0.04700 0.012 0.031 Wealth 0.074 0.01118 6.643 0.0526 0.0965 8 0.0008016. Write the linear equation for the regression line/model indicated by the Regression Analysis Output Table. 17. What is the net effect on "average bank balance per person" for every $10,000 increase in "median household income" in that town? Show your work. 18. Are all five independent variables significant? Which has the lowest P Value? Does this value make you more or less confident about the significant linear relationship of that IV with the DV compared to the P values of the other variables? 19. Controlling for Age, Education, Income, and Wealth, what is the net effect of every $200,000 increase in "median home value" on "average bank balance per person"? Show your work. 20. The town of Kalola has the following characteristics: median age of 34.8 years; 13.7 median years of education; $75,591 of median household income; $155,334 of median home value; and $188,310 of median household wealth. What is the likely average bank balance per person in the town? Show your work and round to the nearest penny (2 decimal places). 9 + 129% = Notes Comments Slide 9 of 14 English (United States)