Consumer Research, Inc., is an independent agency that researches consumer attitudes and behaviors for various 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.Use methods of descriptive statistics to summarize the data. Comment on the findings.Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings.What is the predicted annual credit card charge for a three-person household with an annual income of $40,000?Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful? Income HouseholdAmountIncome Household($1000s)SizeCharged ($)($1000s)SizeAmountCharged ($)543032503155DATA file3740Consumer66512523482733656342214437622155424132452212433412346215637274016546557331595100484742186467407027313348476441104208421924772925144214496539441224482995417156783623530130204828222222331222522463050675539273066125425623234214362722454258338663586503736055345537038904705415735793890297231214183373041272921460342733067307448205149

Answered: Income Household Amount Income…

Algebra: Structure And Method, Book 1

(REV)00th Edition

ISBN:9780395977224

Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Chapter7: Applying Fractions

Section7.1: Ratios

Problem 21WE

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Consumer Research, Inc., is an independent agency that researches consumer attitudes and behaviors for various 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.

Use methods of descriptive statistics to summarize the data. Comment on the findings.
Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings.
What is the predicted annual credit card charge for a three-person household with an annual income of $40,000?
Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful?