What is linear regression equation for total yearly purchase

Reference no: EM131401282

Online clothes. An online clothing retailer keeps track of its customer's purchases. For those customers who signed up for the company's credit card, the company also has information on the customer's Age and Income. A random sample of 500 of these customers shows the following scatterplot of Total Yearly Purchases by Age:

1562_Graph 01.jpg

The correlation between Total Yearly Purchases and Age is r = 0.037. Summary statistics for the two variables are:

	Mean	SD
Age	29.67 yrs	8.51 yrs
Total yearly purchase	$572.52	$253.62

a) What is the linear regression equation for predicting Total Yearly Purchase from Age?

b) Do the assumptions and conditions for regression appear to be met?

c) What is the predicted average Total Yearly Purchase for an 18-year-old? For a 50-year-old?

d) What percent of the variability in Total Yearly Purchases is accounted for by this model?

e) Do you think the regression might be a useful one for the company? Explain.

Reference no: EM131401282

Questions Cloud

Who was responsible for the decisions : One of the research disasters that has always resonated in my mind is the Tuskegee Syphilis Study. In at least 100 words, please share here: What went wrong? Who was responsible for the decisions

What is the change in enthalpy of the gas : Nitrogen at 500? C (k = 1.38, molecular mass is 28.00) flows at a Mach number of 2.73. What are its actual and its acoustic velocity?

Do you believe diversity management is profitable initiative : Finally, let's focus on the workplace. Do you believe diversity management is a profitable initiative? Why or why not? How could a manager learn more about managing a diverse workforce?

What is the new testament : 1. Use Bible (The New Testament) as a resource. Write 700 words essay should be evenly divided to address all three of the following questions: a. What is the New Testament? (Select some key descriptors of the New Testament and explain them.)

What is linear regression equation for total yearly purchase : What is the linear regression equation for predicting Total Yearly Purchase from Age?- Do the assumptions and conditions for regression appear to be met?

What is relationship between social interaction and groups : What is the relationship between social interaction, social structure, and groups within society? In addition the relationship between the bystander effect and status in society

Calculate the ideal thrust and the ideal specific impulse : For an ideal rocket with a characteristic velocity c∗ = 1500 m/sec, a nozzle throat diameter of 20 cm, a thrust coefficient of 1.38, and a mass flow rate of 40 kg/sec, compute the chamber pressure, the thrust, and the specific impulse.

Picture of something that catches your eye : Go to one of your favorite stores and take a picture of something that catches your eye-the front entrance from the street, a display rack inside, a sign on the wall, etc. Upload the photo to the discussion thread and provide a summary of the foll..

Which of the reference groups you believe is most important : Explain which of the reference groups you believe is most important to this family and describe how a firm could best market its products and services to this family. Use specific examples to support your response.

User Account

All Pages