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In: Statistics and Probability

The data in BUSI1013 Credit Card Balance.xlsx is collected for building a regression model to predict...

  1. The data in BUSI1013 Credit Card Balance.xlsx is collected for building a regression model to predict credit card balance of retail banking customers in a Canadian bank. Use this data to perform a simple regression analysis between Account balance and Income (in thousands). (12 points)
  2. Develop a scatter diagram using Account Balance as the dependent variable y and Income as the independent variable x.
  3. Develop the estimated regression equation.
  4. Use the estimated regression equation to predict the Account Balance of a customer with Income of $58 thousands.
  5. Use the critical-value approach to perform an F test for the significance of the linear relationship between account balance and Income at the 0.05 level of significance.
  6. What percentage of the variability of Account Balance can be explained by its linear relationship with Income?
  7. Use the p-value approach to perform a t test for the significance of the linear relationship between Account Balance and Income at the 0.05 level of significance.
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

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