Statistic Project Part "C"
PROJECT C MATH 533 INSTRUCTOR Prof AMIR SADRAIN
1. Generate a scatterplot for CREDIT BALANCE vs SIZE
Regression Analysis: Credit Balance ($) versus Size
2. Determine the equation of the "best fit" line, which describes the relationship between CREDIT BALANCE and SIZE. There is a slight positive relationship between credit balance and size
The regression equation is Credit Balance ($) = 2591 + 403 Size
3. Determine the coefficient of correlation. Interpret.
The coefficient is 403.for any increase in size, the credit balance will change by beta-hat
4. Determine the coefficient of determination. Interpret.
The coefficient of determinations is R2 which is 56.6% Indicates the percentage of the total sample variation of credit balance value accounted for by the model. R2A 55.7% indicates the percentage of the variation of the credit balance value accounted for by the model adjusted for the sample size and the number of beta parameter in the model
5. Test the utility of this regression model (use a two tail test with α =.05). Interpret your results, including the p-value. Since the p-value is 0.000 and less than α =.05 we reject the Ho and conclude that there is sufficient evidence to do so.
6. Based on your findings in 1-5, what is your opinion about using SIZE to predict CREDIT BALANCE? Explain. We can expect the model to prediction of credit balance to be within 260.162 x2 (520.32)
There is a slight positive relationship between credit balance and size
7. Compute the 95% confidence interval for beta-1 (the population slope). Interpret this interval. 95% confidence interval. we are 95% confident that the increase in mean number of credit balance for each additional size will be between (124158.7, 206020.6)
8. Using an interval, estimate the average credit balance for customers that have household size of 5. Interpret this interval. We are 95% confident that the mean of
1. Generate a scatterplot for CREDIT BALANCE vs SIZE
Regression Analysis: Credit Balance ($) versus Size
2. Determine the equation of the "best fit" line, which describes the relationship between CREDIT BALANCE and SIZE. There is a slight positive relationship between credit balance and size
The regression equation is Credit Balance ($) = 2591 + 403 Size
3. Determine the coefficient of correlation. Interpret.
The coefficient is 403.for any increase in size, the credit balance will change by beta-hat
4. Determine the coefficient of determination. Interpret.
The coefficient of determinations is R2 which is 56.6% Indicates the percentage of the total sample variation of credit balance value accounted for by the model. R2A 55.7% indicates the percentage of the variation of the credit balance value accounted for by the model adjusted for the sample size and the number of beta parameter in the model
5. Test the utility of this regression model (use a two tail test with α =.05). Interpret your results, including the p-value. Since the p-value is 0.000 and less than α =.05 we reject the Ho and conclude that there is sufficient evidence to do so.
6. Based on your findings in 1-5, what is your opinion about using SIZE to predict CREDIT BALANCE? Explain. We can expect the model to prediction of credit balance to be within 260.162 x2 (520.32)
There is a slight positive relationship between credit balance and size
7. Compute the 95% confidence interval for beta-1 (the population slope). Interpret this interval. 95% confidence interval. we are 95% confident that the increase in mean number of credit balance for each additional size will be between (124158.7, 206020.6)
8. Using an interval, estimate the average credit balance for customers that have household size of 5. Interpret this interval. We are 95% confident that the mean of