Question

2. The accountant at Superstore wants to determine the relationship between customer purchases at the store, Y ($), and the customer monthly salary, X ($). A sample of 15 customers is randomly selected and the results are summarized in the ANOVA table below:                                                                                                      15 Marks
df SS
Regression 1 176952
Residual 13 98236
Total 14    (A)

Coefficients Standard Error t Stat p-value
Intercept 78.58 7.540 1.202 0.035
Salary 0.066 0.013 4.948 0.003

a. Find A.
b. What is the estimated regression equation that relates the amount of customer’s purchase (Y) to the customer’s monthly salary (X)?
c.   Is the regression relationship significant? Use the p-value approach and 2% level of significance.
d.   Compute the coefficient of determination between the amount purchase and the customer’s monthly salary. Interpret the result in the context of the problem.

Answer 1