Dex Research Limited conducted a research to investigate consumer characteristics that can be used to predict the amount charged by credit card users. The following multiple regression output is based on a data collected by this research company on annual income, household size and annual credit card charges for a sample if 50 consumers. Regression Statistics Multiple R 0.9086 R Square A Adjusted R Square 0.8181 Standard Error 398.0910 Observations B ANOVA df SS MS F Significance F Regression 2 D E G 1.50876E-18 Residual C 7448393.148 F Total 49 42699148.82 Coefficients Standard Error t Stat P-value Intercept 1304.9048 197.6548 6.6019 3.28664E-08 Income ($1000s) 33.1330 3.9679 H 7.68206E-11 Household Size 356.2959 33.2009 10.7315 3.12342E-14 a. Complete the missing entries from A to H in this output (4 marks) b. Estimate the annual credit card charges for a three-person household with an annual income of $40,000. (2 marks) c. Did the estimated regression equation provide a good fit to the data? Explain
Dex Research Limited conducted a research to investigate consumer characteristics that can be used to
predict the amount charged by credit card users. The following multiple regression output is based on a
data collected by this research company on annual income, household size and annual credit card
charges for a sample if 50 consumers.
Regression Statistics
Multiple R 0.9086
R Square A
Adjusted R Square 0.8181
Standard Error 398.0910
Observations B
ANOVA
df SS MS F Significance F
Regression 2 D E G 1.50876E-18
Residual C 7448393.148 F
Total 49 42699148.82
Coefficients Standard Error t Stat P-value
Intercept 1304.9048 197.6548 6.6019 3.28664E-08
Income ($1000s) 33.1330 3.9679 H 7.68206E-11
Household Size 356.2959 33.2009 10.7315 3.12342E-14
a. Complete the missing entries from A to H in this output (4 marks)
b. Estimate the annual credit card charges for a three-person household with an annual income
of $40,000. (2 marks)
c. Did the estimated regression equation provide a good fit to the data? Explain
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