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- From: Mathematics,
- Posted on: Tue 20 Aug, 2013
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Using MINITAB perform the regression and correlation analysis for the data on the dependent variable INCOME (Y) and the independent variable CREDIT BALANCE (X) by answering the following.

- Generate a scatterplot for INCOME ($1000) vs. CREDIT BALANCE ($), including the graph of the "best fit" line. Interpret.
- Determine the equation of the "best fit" line, which describes the relationship between INCOME and CREDIT BALANCE.
- Determine the coefficient of correlation. Interpret.
- Determine the coefficient of determination. Interpret.
- Test the utility of this regression model (use a two tail test with α =.05). Interpret your results, including the p-value.
- Based on your findings in 1-5, what is your opinion about using CREDIT BALANCE to predict INCOME? Explain.
- Compute the 95% confidence interval for beta-1 (the population slope). Â Interpret this interval.
- Using an interval, estimate the average income for customers that have a credit balance of $4000. Interpret this interval.
- Using an interval, predict the income for a customer that has a credit balance of $4000. Interpret this interval.
- What can we say about the income for a customer that has a credit balance of $10000? Explain your answer.

In an attempt to improve the model, we attempt to do a multiple regression model predicting INCOME based on CREDIT BALANCE, YEARS, and SIZE.

- Using MINITAB run the multiple regression analysis using the variables CREDIT BALANCE, YEARS, and SIZE to predict INCOME. State the equation for this multiple regression model.
- Perform the Global Test for Utility (F-Test). Explain your conclusion.
- Perform the t-test on each independent variable. Explain your conclusions and clearly state how you should proceed. In particular, which independent variables should we keep and which should be discarded.
- Is this multiple regression model better than the linear model that we generated in parts 1-10? Explain.
- All DeVry University policies are in effect, including the plagiarism policy.
- Project Part C report is due by the end of Week 7.
- Project Part C is worth 100 total points. See grading rubric below.

**Summarize your results from 1-14 in a report that is three pages or less in length and explains and interprets the results in ways that are understandable to someone who does not know statistics.**

**Submission: The summary report + all of the work done in 1-14 (Minitab Output + interpretations) as an appendix.**

**Format:**

- Summary Report
- Points 1-14 addressed with appropriate output, graphs and interpretations. Be sure to number each point 1-14.

Solution Description

Previously, thank you for purchasing my tutorial. I try to