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Linear & Multiple Regression Analysis

1. Develop estimated regression equations, first using annual income as the independent variable and then using household size as the independent variable.

Which is a better predictor of annual credit card charges?

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

Data set

Income (100's) household Amount Charged
54 3 4016
30 2 3159
32 4 5100
50 5 4742
31 2 1864
55 2 4070
37 1 2731
40 2 3348
66 4 4764
51 3 4110
25 3 4208
48 4 4219
27 1 2477
33 2 2514
65 3 4214
63 4 4965
42 6 4412
21 2 2448
44 1 2995
37 5 4171
62 6 5678
21 3 3623
55 7 5301
42 2 3020
41 7 4828
54 6 5573
30 1 2583
48 2 3866
34 5 3586
67 4 5037
50 2 3605
67 5 5345
55 6 5370
52 2 3890
62 3 4705
64 2 4157
22 3 3579
29 4 3890
39 2 2972
35 1 3121
39 4 4183
54 3 3730
23 6 4127
27 2 2921
26 7 4603
61 2 4273
30 2 3067
22 4 3074
46 5 4820
66 4 5149

Attachments

Solution Summary

The solution provides step by step method for the calculation of regression analysis. Formula for the calculation and Interpretations of the results are also included.

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