In: Statistics and Probability
Account Balance | Income | Years of Education | Size of Household |
8976 | 63 | 12 | 2 |
8308 | 37 | 14 | 2 |
10028 | 52 | 16 | 2 |
11256 | 64 | 15 | 4 |
9869 | 47 | 17 | 2 |
10194 | 74 | 15 | 2 |
8706 | 49 | 12 | 2 |
9557 | 58 | 14 | 2 |
10565 | 70 | 16 | 3 |
9434 | 69 | 11 | 3 |
9687 | 25 | 18 | 3 |
9490 | 57 | 15 | 1 |
8806 | 46 | 14 | 3 |
9561 | 48 | 16 | 2 |
11757 | 80 | 15 | 3 |
9406 | 66 | 14 | 2 |
11150 | 46 | 15 | 3 |
7671 | 28 | 12 | 2 |
8803 | 53 | 13 | 1 |
9571 | 52 | 15 | 2 |
9566 | 77 | 12 | 3 |
7885 | 32 | 14 | 3 |
9773 | 55 | 11 | 1 |
9121 | 52 | 15 | 2 |
9298 | 43 | 14 | 3 |
10285 | 65 | 15 | 2 |
7801 | 38 | 12 | 1 |
9323 | 52 | 14 | 2 |
8643 | 36 | 16 | 3 |
12466 | 85 | 15 | 2 |
9447 | 64 | 14 | 2 |
10727 | 86 | 15 | 2 |
9243 | 57 | 15 | 3 |
9311 | 68 | 12 | 2 |
11033 | 74 | 14 | 3 |
11721 | 82 | 16 | 2 |
8727 | 24 | 15 | 3 |
8438 | 37 | 15 | 3 |
8317 | 55 | 12 | 2 |
8617 | 50 | 14 | 1 |
9052 | 39 | 16 | 3 |
10889 | 73 | 15 | 3 |
7766 | 26 | 14 | 1 |
9189 | 47 | 15 | 2 |
a:
Following is the output of regression anaysis generated by excel:
The multiple regression equation is
(b)
The coefficient of determination is
It shows that 77.2% of variation in accoutn balance is explained by model that is by the independent variables Income, Years of Education, Size of Household.
(c)
The F test statistics is
F = 45.10
The critical value of F using excel function "=FINV(0.01,3,40)" is
Since so we can conclude that model is significant.
(d)
The test statistics for income variable is
t = 10.186
The p-value is
p-value = 0.0000
Since p-value is less than α = 0.05 so income variable is significant to the model.
(e)
The test statistics for Size of Household variable is
t = 1.707
The p-value is
p-value = 0.0956
Since p-value is greater than α = 0.05 so Size of Household variable is not significant to the model.
(f)
The estimated account balance is