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Century National Bank Scatter Diagram and Correlations

1) Compute/answer the following about the variables "Balance" and "ATM", fr om the Century National Bank Data Set.

a) Develop a scatter diagram that represents the question, do higher balances lead to higher usage of ATMs?
b) The coefficient of correlation (interpret)
c) The coefficient of determination (interpret)
d) Is the coefficient of correlation significant at the .05 level of significance (conduct a hypothesis test for this)?
e) The regression equation that answers the question, do higher balances lead to higher usage of ATMs?
f) How many times would you predict the ATM would be used by someone with a balance of $650?

Balance ATM Services Debit Interest City
1756 13 4 0 1 2
748 9 2 1 0 1
1501 10 1 0 0 1
1831 10 4 0 1 3
1622 14 6 0 1 4
1886 17 3 0 1 1
740 6 3 0 0 3
1593 10 8 1 0 1
1169 6 4 0 0 4
2125 18 6 0 0 2
1554 12 6 1 0 3
1474 12 7 1 0 1
1913 6 5 0 0 1
1218 10 3 1 0 1
1006 12 4 0 0 1
2215 20 3 1 0 4
137 7 2 0 0 3
167 5 4 0 0 4
343 7 2 0 0 1
2557 20 7 1 0 4
2276 15 4 1 0 3
1494 11 2 0 1 1
2144 17 3 0 0 3
1995 10 7 0 0 2
1053 8 4 1 0 3
1526 8 4 0 1 2
1120 8 6 1 0 3
1838 7 5 1 1 3
1746 11 2 0 0 2
1616 10 4 1 1 2
1958 6 2 1 0 2
634 2 7 1 0 4
580 4 1 0 0 1
1320 4 5 1 0 1
1675 6 7 1 0 2
789 8 4 0 0 4
1735 12 7 0 1 3
1784 11 5 0 0 1
1326 16 8 0 0 3
2051 14 4 1 0 4
1044 7 5 1 0 1
1885 10 6 1 1 2
1790 11 4 0 1 3
765 4 3 0 0 4
1645 6 9 0 1 4
32 2 0 0 0 3
1266 11 7 0 0 4
890 7 1 0 1 1
2204 14 5 0 0 2
2409 16 8 0 0 2
1338 14 4 1 0 2
2076 12 5 1 0 2
1708 13 3 1 0 1
2138 18 5 0 1 4
2375 12 4 0 0 2
1455 9 5 1 1 3
1487 8 4 1 0 4
1125 6 4 1 0 2
1989 12 3 0 1 2
2156 14 5 1 0 2

Solution Preview

Please see the attached files.

a) The scatter diagram that represents the question, do higher balances lead to higher usage of ATMs is given below

To answer the remaining questions first we have to fit a regression line by taking ATM usage as dependent variable and Balance as independent variable. For this we can use the data analysis tool of MS Excel as follows.
Procedure for Regression Analysis in Excel
1. Enter data in an excel sheet giving variable names in the first row
2. Tools > Data Analysis > Regression > OK
3. Click on Input Y Range (Select the dependent variable range including the variable name)
4. Click on Input X Range (Select the independent ...

Solution Summary

Century national bank scatter diagrams and correlations are examined.

$2.19