Question

Financial analysts know that January credit card charges will generally be much lower than those of the month before. What about the difference between January and the next​ month? Does the trend​ continue? The accompanying data set contains the monthly credit card charges of a random sample of 99 cardholders

a) Build a regression model to predict February charges from January charges.

How would i do this step by step using technology so I can do other problems in the future? thanks

Info as follows,

January   February
903.36   641.41
7216.64   4564.18
4241.95   2271.91
80.04   299.76
4042.11   1376.29
89.26   -120.71
3293.39   1930.22
2420.13   2609.21
83.82   144.89
6.42   393.12
0.00   40.47
564.65   295.65
2716.76   850.06
187.18   162.02
3263.89   2414.09
1523.94   956.75
1359.14   38.02
733.39   2654.35
75.02   64.98
70.25   -70.32
633.77   1861.04
1042.18   478.25
554.04   995.92
1017.77   773.81
1303.54   3370.06
249.41   5.53
48.76   96.94
872.94   890.87
485.12   485.35
617.15   1486.06
1573.16   889.96
422.68   391.44
770.12   323.41
56.56   0.00
1486.22   2252.37
495.91   390.17
1064.03   1065.35
509.78   131.28
5640.82   4944.13
5.49   5.51
872.15   591.89
1636.55   3359.75
92.21   85.94
669.76   1367.93
828.32   280.78
69.17   67.96
830.67   1057.14
2300.06   3316.72
270.19   14.12
210.68   160.51
1012.22   519.07
1045.35   2022.15
298.81   635.55
-30.01   0.00
1634.94   392.94
1734.14   1322.93
0.00   65.06
31.43   28.79
4.95   77.26
1087.29   891.96
26.87   29.03
120.13   32.23
2008.16   815.76
291.61   779.22
103.95   0.00
53.04   66.31
2839.62   1532.58
675.23   293.85
221.88   171.88
37.73   4.78
533.35   881.72
1932.82   1063.68
692.37   914.31
6803.27   5946.65
393.03   465.81
1306.92   302.99
796.34   497.76
0.00   266.36
1040.66   59.43
565.25   206.79
339.21   411.71
5280.13   5318.84
40.05   72.61
43.36   38.47
653.93   480.47
1070.37   416.33
2336.21   1789.52
91.43   175.14
1434.31   1108.34
720.74   307.54
28.61   24.17
980.14   1215.17
1578.04   1810.37
0.00   468.49
162.05   147.83
494.39   1993.96
533.52   935.44
462.27   114.63
1478.22   2092.13

Answer 1

I have run the Regression on R-studio and I am attaching the output below.

lm(Y~X) is the function to fit linear models in R where Y is the dependent Variable and X is the independent variable.

Thus, the fitted model is: February = 164.5208 + 0.7233*January