Question
In: Statistics and Probability
The following data lists age (x, in years) and FICO credit score (y) for 15 random...
The following data lists age (x, in years) and FICO credit score (y) for 15 random credit card customers. At the 10% significance level, use Excel to test the claim that age and credit score are linearly related by specifying the slope estimate, p-value and final conclusion below. Do not round any intermediate calculations. Round your slope estimate answer to 2 decimal places. Round your p-value to 4 decimal places. Enter a "−" sign in front of any negative answer.
Slope estimate =
p-value =
Final conclusion:
The data does not support the claim that age and credit score are linearly related.
The data supports the claim that age and credit score are linearly related.
Age Credit Score
68 603
61 805
45 774
73 661
80 793
69 611
25 575
42 732
47 515
26 714
71 702
69 792
27 791
79 660
72 713
Solutions
Expert Solution
Using Excel, go to Data, Select Data Analysis, choose Regression. Put Age in X input range and Credit score in Y input range. Put confidence level = 90
| SUMMARY OUTPUT | |||||
| Regression Statistics | |||||
| Multiple R | 0.0627 | ||||
| R Square | 0.0039 | ||||
| Adjusted R Square | -0.0727 | ||||
| Standard Error | 93.1960 | ||||
| Observations | 15 | ||||
| ANOVA | |||||
| df | SS | MS | F | Significance F | |
| Regression | 1 | 445.5950 | 445.5950 | 0.0513 | 0.8243 |
| Residual | 13 | 112911.3384 | 8685.4876 | ||
| Total | 14 | 113356.9333 | |||
| Coefficients | Standard Error | t Stat | P-value | ||
| Intercept | 679.8155 | 75.6761 | 8.9832 | 0.0000 | |
| Age | 0.2854 | 1.2602 | 0.2265 | 0.8243 |
Slope estimate = 0.29
p-value (Significance F) = 0.8243
H0: Age and credit score are not linearly related
H1: Age and credit score are linearly related
p-value = 0.8243
Since p-value is more than 0.10, we do not reject the null hypothesis.
The data does not support the claim that age and credit score are linearly related.
orchestra answered 1 year agoRelated Solutions
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