MINITAB

Using MINITAB perform the regression and correlation analysis for the data on INCOME (Y, the dependent variable) and CREDIT BALANCE (X, the independent variable) by answering the following.
1.Generate a scatterplot for INCOME vs. CREDIT BALANCE, including the graph of the “best fit” line. Interpret.
2.Determine the equation of the “best fit” line, which describes the relationship between INCOME and CREDIT BALANCE.
3.Determine the coefficient of correlation. Interpret.
4.Determine the coefficient of determination. Interpret.
5.Test the utility of this regression model (use a two tail test with =.05). Interpret your results, including the p-value.
6.Based on your findings in 1-5, what is your opinion about using CREDIT BALANCE to predict INCOME? Explain.
7.Compute the 95% confidence interval for beta-1 (the population slope). Interpret this interval.
8.Using an interval, estimate the average income for customers that have credit balances of \$4,000. Interpret this interval.
9.Using an interval, predict the income for a customer that has a credit balance of \$4,000. Interpret this interval.
10.What can we say about the income for a customer that has a credit balance of \$10,000? Explain your answer.

In an attempt to improve the model, we decide to do a multiple regression analysis predicting INCOME based on CREDIT BALANCE, SIZE and YEARS.
11.Using MINITAB run the multiple regression analysis using the variables CREDIT BALANCE, SIZE and YEARS to predict INCOME. State the equation for this multiple regression model.
12.Perform the Global Test for Utility (F-Test). Explain your conclusion.
13.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. If appropriate, re-run the multiple regression using only the significant independent variables and the dependent variable. Include your output and interpret it.
14.Is this multiple regression model better than the linear model that we generated in parts 1-10? Explain.
15.All DeVry University policies are in effect, including the plagiarism policy.
16.Project Part C report is due by the end of Week 7.
17.Project Part C is worth 100 total points. See grading rubric below.

Data:

Location Income (\$1000) Size Years Credit Balance(\$)
Urban 27 1 2 2631
Rural 25 4 2 2047
Suburban 25 1 1 3155
Suburban 26 1 2 3913
Rural 30 5 5 2660
Urban 29 1 3 3531
Rural 33 6 10 2766
Urban 30 1 4 3769
Suburban 32 2 4 4082
Urban 34 1 6 3806
Urban 35 1 8 4049
Urban 40 1 9 4073
Rural 30 6 9 2697
Rural 33 6 11 2914
Urban 42 2 10 4073
Suburban 32 2 4 4310
Urban 43 2 10 4199
Urban 43 2 10 4253
Rural 33 7 13 3104
Urban 47 2 10 4293
Subu rban 35 3 5 4456
Urban 54 2 11 4340
Suburban 42 3 5 4925
Rural 36 7 13 3178
Urban 57 3 11 4391
Suburban 44 3 6 4947
Rural 38 7 15 3203
Urban 54 3 8 4354
Urban 54 3 10 4366
Suburban 46 4 6 5003
Rural 40 7 15 3250
Urban 60 4 11 4402
Urban 58 4 10 4397
Urban 61 5 13 4595
Urban 61 5 13 4786
Urban 62 6 14 4888
Suburban 49 5 8 5148
Urban 68 6 14 5011
Suburban 57 6 8 5220
Rural 45 8 16 3257
Urban 71 7 15 5528
Suburban 57 7 9 5283
Suburban 64 8 9 5332
Rural 45 8 17 3304
Urban 74 7 19 5553
Suburban 65 8 10 5484
Rural 47 8 18 3342
Rural 53 8 18 3788
Suburban 66 8 10 5756
Suburban 69 8 10 5861

Posted on: January 10, 2019, by :