MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
expand_more
expand_more
format_list_bulleted
Related questions
Question
Consumer Research, Inc.
Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes and behaviors for a variety of firms. In one study, a client asked for an investigation of consumer characteristics that can be used to predict the amount charged by credit card users. The following data were collected on annual income, household size, and annual credit card charges for a sample of 50 consumers.
Managerial Report
- Use methods of
descriptive statistics to summarize the Comment on the findings.
- Develop estimated regression equations, first using annual income as the independent variable and then using household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss your findings.
- Develop an estimated regression equation with annual income and household size as the independent Discuss your findings.
- What is the predicted annual credit card charge for a three-person household with an annual income of $40,000?
- Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful?
Transcribed Image Text:Income Household Amount
($1000s) Size
54
30
32
50
31
55
37
40
66
51
25
48
27
33
Income Household
($1000s) Size
65
63
42
3
2
4
5
2
2
1
2
4
3
3
4
1
2
21
44
37
62
21
55
42
41
3
4
6
2
1
5
6
3
7
2
7
Charged ($)
4016
3159
5100
4742
1864
4070
2731
3348
4764
4110
4208
4219
2477
2514
Amount
Charged ($)
4214
4965
4412
2448
2995
4171
5678
3623
5301
3020
4828
Income Household Amount
($1000s) Size
54
30
48
34
67
50
67
55
52
62
64
22
29
39
Income Household
($1000s) Size
35
39
54
23
27
26
6
1
2
5
4
2
5
6
2
3
2
3
4
2
61
30
22
46
66
1
4
3
6
2
7
2
2
4
5
4
Charged ($)
5573
2583
3866
3586
5037
3605
5345
5370
3890
4705
4157
3579
3890
2972
Amount
Charged ($)
3121
4183
3730
4127
2921
4603
4273
3067
3074
4820
5149
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Step 1: Write the given information
VIEW Step 2: Use methods of descriptive statistics to summarize the Comment on the findings.
VIEW Step 3: Develop an estimated regression equations
VIEW Step 4: Develop an estimated regression equation with annual income and household size as the independent
VIEW Step 5: Predict the annual credit card charge for a three-person household with an annual income of $40,000
VIEW Step 6: Discuss the need for other independent variables that could be added to the model
VIEW Solution
VIEW 
Trending nowThis is a popular solution!
Step by stepSolved in 7 steps with 23 images
Knowledge Booster
Similar questions
- A descriptive statistic is generally defined as: a. the entire group of interest about which we want to make conclusions. b. a single number or group of numbers that organize, summarize, and communicate a group of numerical observations. c. a subset, or smaller collection, of observations from the overall group of interest. d. using data to make general estimates about the overall group of interest.arrow_forwardWhen writing the participant section for your formal report, you include only information that directly describes your participants, and do not include information on measures they have completed. True or falsearrow_forwardPlease apply table to question. Thanks!arrow_forward
- You may need to use the appropriate appendix table or technology to answer this question. The increasing annual cost (including tuition, room, board, books, and fees) to attend college has been widely discussed (Time.com). The following random samples show the annual cost of attending private and public colleges. Data are in thousands of dollars. Private Colleges Public Colleges 52.8 44.2 45.0 33.3 44.0 20.3 22.0 28.2 15.6 24.1 28.5 31.6 44.8 36.8 50.5 43.0 22.8 25.8 18.5 25.6 14.4 21.8 (a) Compute the sample mean (in thousand dollars) and sample standard deviation (in thousand dollars) for private colleges. (Round the standard deviation to two decimal places.) sample mean $ 42.6 v thousand sample standard deviation $ 6.85 v thousand Compute the sample mean (in thousand dollars) and sample standard deviation (in thousand dollars) for public colleges. (Round the standard deviation to two decimal places.) v thousand v thousand sample mean $ 22.3 sample standard deviation $ 4.53 (b) What…arrow_forwardThe Bureau of Labor Statistics reports that the official unemployment rate for Black people was 10.4% and 4.7% for White people in February 2015. Select all correct answers for this question. O The samples of white and black people are independent. The explanatory variable is the unemployment rate. The response variable is the unemployment rate. The response variable is race.arrow_forwardA social worker in South Phoenix delivered an intervention on financial literacy. The program is six weeks long (one hour per week). She collected pre and post- test surveys in order to determine if participants’ knowledge on financial literacy increased due their involvement in the program. Review the table below and answer the following questions. Table 1. Financial literacy intervention change from pre to post test M SD t p Financial Literacy Knowledge 5.04 .001 Pre test 7.25 1.78 Post test 8.42 1.20 1. Was a dependent or independent t-test used to analyze the data? How do you know?arrow_forward
- Lynn University wants to examine whether students display better academic performance in class versus online. They have collected GPAs of two different samples of students, a sample from classes that take place in-person and a sample from classes that take place online. The data set is below. They predict that in-class students perform better than online students. GPA's In Class GPA Online GPA 4.0 4.0 3.5 2.2 3.7 3.3 3.5 3.7 2.0 2.5 3.2 3.8 3.3 3.8 What type of t-test should we use for this research question? Group of answer choices a) One sample b) Independent samples c) Paired Samplesarrow_forwardTourism is extremely important to the economy of Florida. Hotel occupancy is an often-reported measure of visitor volume and visitor activity (Orlando Sentinel, May 19, 2018). Hotel occupancy data for February in two consecutive years are as follows. Current Year 1,476 1,800 Occupied Rooms Total Rooms 1,422 1,800 a. Formulate the hypothesis test that can be used to determine whether there has been an increase in the proportion of rooms occupied over the one-year period. Let P₁= population proportion of rooms occupied for current year P2 population proportion of rooms occupied for previous year - P2 less than or equal to 0 greater than 0 Ho P1 Ha P1 P2 b. What is the estimated proportion of hotel rooms occupied each year (to 2 decimals)? Current year .80 X Previous Year .77 c. Conduct a hypothesis test. What is the p-value (to 4 decimals)? Use Table 1 from Appendix B. Previous Year p-value = 0.0166 Using a 0.05 level of significance, what is your conclusion? We can conclude that there…arrow_forwardHow productive are U.S. workers? One way to answer this question is to study annual profits per employee. A random sample of companies in computers (I), aerospace (II), heavy equipment (III), and broadcasting (IV) gave the following data regarding annual profits per employee (units in thousands of dollars). I II III IV 27.9 13.5 22.2 17.9 23.2 9.6 20.5 16.4 14.7 11.1 7.7 14.5 8.3 8.9 12.7 15.9 11.8 6.5 7.7 10.6 19.1 9.5 What are the degrees of freedom? (numerator) (denominator)(c) Find the P-value of the sample test statistic. P-value > 0.100 0.050 < P-value < 0.100 0.025 < P-value < 0.050 0.010 < P-value < 0.025 0.001 < P-value < 0.010 P-value < 0.001 (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Since the P-value is greater than the level of significance at α = 0.05, we do not reject H0. Since the P-value is less than or equal to the level of significance at α = 0.05, we…arrow_forward
- Please assist with all questions and workings to learnarrow_forwardConsider the following data. Satisfaction level depended on the speed of execution. A portion of the survey results are as follows: Brokerage Satisfaction Speed Scottrade, Inc. 3.5 3.4 Charles Schwab 3.4 3.3 Fidelity Brokerage Services 3.9 3.4 TD Ameritrade 3.7 3.6 USAA Brokerage Services 2.9 3.22 | Page Vanguard Brokerage Services 2.6 2.6 Wells Fargo Investments 4.0 4.0 i. At the ��= 0.01 level, would you feel comfortable to use the estimated regression equation to relate the speed of execution and satisfaction level? What is your conclusion? (Use p-vale approach) ii. Estimate the 98% confidence interval for speed of executionarrow_forwardi’m sooo lost on how to do this question.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning 
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman