Question

In: Math

The conference Board produces a Consumer Confidence Index (CCI) that reflects people's feelings about general business...

The conference Board produces a Consumer Confidence Index (CCI) that reflects people's feelings about general business conditions, employment opportunities, and their own income prospects. Some researchers may feel that consumer confidence is a function of the median household income.

Use the attached MS Excel spreadsheet containing the CCIs for nine years and the median household incomes for the same nine years published by the U.S. Census Bureau.

Perform a correlation and regression analysis to predict CCI using median household income. Discuss the following:

  1. Scatter Diagram
  2. R, R2 and 1-R2
  3. The regression equation
  4. Standard error of estimate
  5. The test of hypothesis with the 5-step process. Use a .05 level of significance. Does median household income appear to be good predictor of the CCI? Why or why not?
CCI Median House Hold Income ($1,000)
116.8 37415
91.5 36770
68.5 35501
61.6 35047
65.9 34700
90.6 34942
100 35887
104.6 36306
125.4 37005

Solutions

Expert Solution

milcah answered 1 year ago
Next > < Previous

Related Solutions

The Conference Board produces a Consumer Confidence Index (CCI) that reflects people’s feelings about general business...
The Conference Board produces a Consumer Confidence Index (CCI) that reflects people’s feelings about general business conditions, employment opportunities, and their own income prospects. Some researchers may feel that consumer confidence is a function of the median household income. Shown here are the CCIs for nine years and the median household incomes for the same nine years published by the U.S. Census Bureau. Determine the equation of the regression line to predict the CCI from the median household income. Compute...
Applying Simple Linear Regression (Detecting Changes in Market Share) The Conference Board produces a Consumer Confidence...
Applying Simple Linear Regression (Detecting Changes in Market Share) The Conference Board produces a Consumer Confidence Index (CCI) that reflects people’s feelings about general business conditions, employment opportunities, and their own income prospects. Some researchers may feel that consumer confidence is a function of the median household income. Shown here are the CCIs for nine years and the median household incomes for the same nine years published by the U.S. Census Bureau. Determine the equation of the regression line to...
For the consumer confidence by Michigan metrics (index of consumer sentiment, current economic conditions, and index...
For the consumer confidence by Michigan metrics (index of consumer sentiment, current economic conditions, and index of consumer expectations) Can you please provide the metrics for January 2018 to February 2019 ?
Expectations play an important role in macroeconomic analysis. Consumer and business confidence are major drivers of...
Expectations play an important role in macroeconomic analysis. Consumer and business confidence are major drivers of the economy in the short run. Describe how your expectations about the future of the economy have changed as a result of Covid-19. How are you changing your spending patterns during this crisis? How has the Coronavirus pandemic affected your plans for the future? Have you reevaluated your educational and/or transfer plans? Your career choices? Investment strategies? Are you concerned by the large deficits...
Which of the following are correct general statements about confidence intervals, as discussed in this class?...
Which of the following are correct general statements about confidence intervals, as discussed in this class? (Select all that apply. To be marked correct: All of the correct selections must be made, with no incorrect selections.) In general: The higher the confidence level, the wider the associated confidence interval. In general: A point-estimate has a positive percentage level of confidence associated with it. In general, for a given confidence interval: Confidence levels and probability values are different ideas. In general,...
Which is not true about savings? (The other options are true.) It falls when consumer confidence...
Which is not true about savings? (The other options are true.) It falls when consumer confidence increases, because that causes consumption to rise. When there is a wide-spread increase in the desire to save, the interest rate tends to fall. It is equal to Income - Consumption - Taxes. It rises when income increases and consumption does not change. It will shift up/right when people are given additional assurances that most of their retirement expenses will be paid for by...
USA Today reported that about 47% of the general consumer population in the United States is...
USA Today reported that about 47% of the general consumer population in the United States is loyal to the automobile manufacturer of their choice. Suppose Chevrolet did a study of a random sample of 1009 Chevrolet owners and found that 482 said they would buy another Chevrolet. Does this indicate that the population proportion of consumers loyal to Chevrolet is more than 47%? Use α = 0.01. (a) What is the level of significance? State the null and alternate hypotheses....
USA Today reported that about 47% of the general consumer population in the United States is...
USA Today reported that about 47% of the general consumer population in the United States is loyal to the automobile manufacturer of their choice. Suppose Chevrolet did a study of a random sample of 1006 Chevrolet owners and found that 490 said they would buy another Chevrolet. Does this indicate that the population proportion of consumers loyal to Chevrolet is more than 47%? Use 1% level of significance. a. Identify the underlying distribution and state why. b. State the null...
USA Today reported that about 47% of the general consumer population in the United States is...
USA Today reported that about 47% of the general consumer population in the United States is loyal to the automobile manufacturer of their choice. Suppose Chevrolet did a study of a random sample of 1009 Chevrolet owners and found that 483 said they would buy another Chevrolet. Does this indicate that the population proportion of consumers loyal to Chevrolet is more than 47%? Use α = 0.01.(a) What is the level of significance? State the null and alternate hypotheses. H0:...
USA Today reported that about 47% of the general consumer population in the United States is...
USA Today reported that about 47% of the general consumer population in the United States is loyal to the automobile manufacturer of their choice. Suppose that Chevrolet did a study of a random sample of 1006 Chevrolet owners and found that 503 said that they would buy another Chevrolet. Check the assumptions for constructing a confidence interval Construct a 90% confidence interval Construct a 95% confidence interval Construct a 99% confidence interval What happened to the margin of error as...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT