Suppose the Bank of Delaware would like to develop a regression model to predict a persons credit
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Suppose the Bank of Delaware would like to develop a regression model to predict a person’s credit score based on his or her age, weekly income, and education level (high school diploma, bachelor’s degree, graduate degree). The Excel file Bank of Delaware 2. xlsx provides these data for a random sample of customers.
a. Using PHStat, check for the presence of multicollinearity.
b. If multicollinearity is present, take the necessary steps to eliminate it.
c. Perform a best subsets regression and choose the most appropriate model for these data.
d. Identify the regression equation for the model in part c.
e. Perform a residual analysis with the model in part c to verify that the conditions for the model are met.
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a b There is no evidence that multicollinearity is present with these four independent variabl...View the full answer
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