Develop an estimated regression equation with annual income

Assignment Help Applied Statistics

Reference no: EM131505975

Task 1 -

Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes and behaviours 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 recorded for Consumer information.

Income ($1000s)	Household Size	Amount Charged ($)	Income ($1000s)	Household Size	Amount Charged ($)
54	3	4016	54	6	5573
30	2	3159	30	1	2583
32	4	5100	48	2	3866
50	5	4742	34	5	3586
31	2	1864	67	4	5037
55	2	4070	50	2	3605
37	1	2731	67	5	5345
40	2	3348	55	6	5370
66	4	4764	52	2	3890
51	3	4110	62	3	4705
25	3	4208	64	2	4157
48	4	4219	22	3	3579
27	1	2477	29	4	3890
33	2	2514	39	2	2972
65	3	4214	35	1	3121
63	4	4965	39	4	4183
42	6	4412	54	3	3720
21	2	2448	23	6	4127
44	1	2995	27	2	2921
37	5	4171	26	7	4603
62	6	5678	61	2	4273
21	3	3623	30	2	3067
55	7	5301	22	4	3074
42	2	3020	46	5	4820
41	7	4828	66	4	5149

Required:

1. Use methods of descriptive statistics to summarize the data. Comment on the findings.

2. Develop estimated regression equations, first using annual income as the in- dependent variable and then using household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss your findings.

3. Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings.

4. What is the predicted annual credit card charge for a three-person household with an annual income of $40,000?

5. Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful?

Task 2 -

The data set for group assignment you can find in the Excel document,

Required:

Activity 01: Enter all data from the spreadsheet "Data for Assignment "into Excel. You will need to set up the variable view with the following 11 variables and then enter the data in excel:

a) Student_ID,

b) Year_Enrolled,

c) HI001_Final_Exam,

d) HI001_Assignment_01,

e) HI001_Assignment_02,

f) HI002_Final_Exam,

g) HI002_Assignment_01,

h) HI002_Assignment_02,

i) HI003_Final_Exam,

j) HI003_Assignment_01,

k) HI003_Assignment_02.

Activity 02:

a) Draw a histogram for each one of the 11 variables?

b) Do descriptive statistics (mean, standard deviation, minimum, maximum) for each one of the 11 variables.

Activity 03:

a) Do at least 10 different correlations between the any pairs of variables: For example:

HI001_Final_Exam and HI002_Final_Exam
HI001_Assignment_01 and HI001_Assignment_02

b) For each correlation discuss the results:

Are they are positive/negatively correlated?
Are they weak or strong correlations?
What is the significance value?
What does the significance value reveal about the data we have used?

Required:

a) Copy paste the result from your Excel file to a Word document.

b) Copy-paste ALL the output from all the activities requested in Activity 01 to 03 in Excel and put the answers in the same Word document.

c) Answer all discussion questions requested in Activity 01 to 03 and put the answers in the same Word document.

d) Submit a soft copy of the Excel files used in Excel and the Assignment Word document online under Assignment final submission.

Task 3 -

As part of a long-term study of individuals 65 years of age or older, sociologists and physicians at the Wentworth medical Center in upstate New York investigated the relationship between geographic location and depression. A sample of 60 individuals, all in reasonably good health, was selected; 20 individuals were residents of Florida, 20 were residents of New York, and 20 were residents of North Carolina. Each of the individuals sampled was given a standardized test to measure depression. The data collected follow; higher test scores indicate higher levels of depression. These data are available on the website that accompanies this text in the file named medical1. A second part of the study considered the relationship between geographic location and depression for individuals 65 years of age or older who had a chronic health condition such as arthritis, hypertension, and/or heart ailment. A sample of 60 individuals with such conditions was identified. Again, 20 were residents of Florida, 20 were residents of New York, and 20 were residents of North Carolina. The levels of depression recorded for this study follow. These data are available on the website that accompanies this text in the file named medical2.

Florida	New York	North Carolina	Florida	New York	North Carolina
3	8	10	13	14	10
7	11	7	12	9	12
7	9	3	17	15	15
3	7	5	17	12	18
8	8	11	20	16	12
8	7	8	21	24	14
8	8	4	16	18	17
5	4	3	14	14	8
5	13	7	13	15	14
2	10	8	17	17	16
6	6	8	12	20	18
2	8	7	9	11	17
6	12	3	12	23	19
6	8	9	15	19	15
9	6	8	16	17	13
7	8	12	15	14	14
5	5	6	13	9	11
4	7	3	10	14	12
7	7	8	11	13	13
3	8	11	17	11	11

Required:

1. Use descriptive statistics to summarize the data from the two studies. What are your preliminary observations about the depression scores?

2. Use analysis of variance on both data sets. State the hypotheses being tested in each case. What are your conclusions?

3. Use inferences about individual treatment means where appropriate. What are your conclusions?

Make sure that all questions will be included with the required description.

Attachment:- Assignment Data.rar

Reference no: EM131505975

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