Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes and behaviors for a variety of firms. In one study, a client asked for an investigation of consumer characteristics that can be used to predict the amount charged by credit card users. Data were collected on annual income, household size, and annual credit card charges for a sample of 50 consumers. The following data are contained in the file Consumer. A. Develop scatter plots of amount charged versus annual income, and amount charged versus household size. Comment on the relationship between amount charged and these two variables. B. Develop an estimated regression equation that can be used to predict the amount charged given the two independent variables (annual income, and household size). C. Interpret the coefficients on the annual income, and household size variables.
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Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes and behaviors for a variety of firms. In one study, a client asked for an investigation of consumer characteristics that can be used to predict the amount charged by credit card users. Data were collected on annual income, household size, and annual credit card charges for a sample of 50 consumers. The following data are contained in the file Consumer. |
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A. Develop |
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B. Develop an estimated regression equation that can be used to predict the amount charged given the two independent variables (annual income, and household size). |
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C. Interpret the coefficients on the annual income, and household size variables. |
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D. Do a residual plot of standard residuals on the predicted values. Are all four regression assumptions satisfied? |
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D. Do a residual plot of standard residuals on the predicted values. Are all four regression assumptions satisfied?
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