Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 9 (5 points) PART 3: Analysis of Credit Data: Choose the correct statement from below: this is related to part() of the effect of
Question 9 (5 points) PART 3: Analysis of Credit Data: Choose the correct statement from below: this is related to part() of the effect of Age on Credit Card Balance in simple linear regression setting (Age is the only predictor) Age have a positive and significant effect on credit balance as evidenced by positive coefficient and high p-value (>0.1) Age does not have any significant effect on credit balance as evidenced by high p-value (>0.1) Age have a poctive and significant effect on credit balance as evidenced by positive coefficient and low p-value (0.1) Question 10 (5 points) PART 3: Analysis of Credit Data: Choose the correct statement from below for the analysis of part (ii) when both Age and Credit Rating are used as predictors: After controlling for credit rating, age has a non significant positive effect on credit card balance. Holding credit rating constant, credit card balance is likely to be lower for an older person as compared to younger person as evidenced by the negative (-2.35) and significant coefficient (p-value names(credit) [1] "X" "Income" [9] "Student" "Married Im.fit2-1m(Balance-Age) > summaryClm.fitz) "Education" "Gender" # lo Ln su Call: Im(formula - Balance - Age) FI Residuals: Min 1Q Median 30 Max -521.40 -451.50 -59.94 343.47 1476.91 Coefficients: Estimate Std. Error t value Prsiti (Intercept) 517.29222 77.85153 6.645 le-10. Age 0.04891 1.33599 0.037 0.971 Signif. codes: 0 0.001 0.01 0.05 0.11 Residual standard error: 460.3 on 398 degrees of freedom Multiple R-squared: 3.368e-06. Adjusted R-squared: -0.002509 F-statistic: 0.00134 on 1 and 398 DF, p-value: 0.9708 > > ##11 ### > lm.fit3-lm(Balance-Age-Rating) > lm, fit3 Call: Im(formula - Balance - Age + Rating) Go to file/function Addins - Source Console Terminal x Jobs --/Documents/finance 4090/data/ > ### ii ### > lm.fit3-.m(Balance-Age-Rating) > lm, fit3 Call: im formula - Balance - Age + Rating) Coefficients: (Intercept) Age Rating -269.581 -2.351 2.593 I > summaryclm.fit3) Call: Im(formula - Balance - Age + Rating) Residuals: Min 1Q Median 30 -733.20 - 136.60 -6.52 126.78 836.54 Max Coefficients: Estimate Std. Error t value Pr(It) (Intercept) -269.58110 44.80616 -6.017 4.05e-09 ... Age -2.35078 0.66764 -3.521 0.00048 .. Rating 2.59328 0.07443 34.840 2e-16 Signif. codes: 0 0.001 0.01 0.05.' 0.11 Residual standard error: 228.8 on 397 degrees of freedom Multiple R-squared: 0.7535, Adjusted R-squared: 0.7523 F-statistic: 606.9 on 2 and 397 DF, p-value:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started