Home » Project part c: regression and correlation analysis

# Project part c: regression and correlation analysis

Using MINITAB perform the regression and correlation analysis for the data on CREDIT BALANCE (Y) and SIZE (X) by answering the following.

1. Generate a scatterplot for INCOME (\$1000) vs. CREDIT BALANCE(\$), including the graph of the “best fit” line. Interpret.

2. Determine the equation of the “best fit” line, which describes the relationship between INCOME and CREDIT BALANCE.

3. Determine the coefficient of correlation. Interpret.

4. Determine the coefficient of determination. Interpret.

5. Test the utility of this regression model (use a two tail test with α =.05). Interpret your results, including the p-value.

6. Based on your findings in 1-5, what is your opinion about using CREDIT BALANCE to predict INCOME? Explain.

7. Compute the 95% confidence interval for beta-1 (the population slope). Interpret this interval.

8. Using an interval, estimate the average income for customers that have credit balance of \$4,000. Interpret this interval.

9. Using an interval, predict the income for a customer that has a credit balance of \$4,000. Interpret this interval.

10. What can we say about the income for a customer that has a credit balance of \$10,000? Explain your answer.

11.

In an attempt to improve the model, we attempt to do a multiple regression model predicting INCOME based on CREDIT BALANCE, YEARS and SIZE.

Using MINITAB run the multiple regression analysis using the variables CREDIT BALANCE, YEARS and SIZE to predict INCOME. State the equation for this multiple regression model.

12. Perform the Global Test for Utility (F-Test). Explain your conclusion.

13. Perform the t-test on each independent variable. Explain your conclusions and clearly state how you should proceed. In particular, which independent variables should we keep and which should be discarded.

14. Is this multiple regression model better than the linear model that we generated in parts 1-10? Explain.

All DeVry University policies are in effect, including the plagiarism policy.
Project Part C report is due by the end of Week 7.
Project Part C is worth 100 total points. See grading rubric below.
Summarize your results from 1-14 in a report that is three pages or less in length and explains and interprets the results in ways that are understandable to someone who does not know statistics.

Submission: The summary report + all of the work done in 1-14 (Minitab Output + interpretations) as an appendix.

Format:

Summary Report
Points 1-14 addressed with appropriate output, graphs and interpretations. Be sure to number each point 1-14.

Category Points % Description
Questions 1 – 12 and 14 – 5 pts. each 65 65 addressed with appropriate output, graphs and interpretations
Question 13 15 15 addressed with appropriate output, graphs and interpretations
Summary 20 20 writing, grammar, clarity, logic, and cohesiveness
Total 100 100 A quality paper will meet or exceed all of the above requirements.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.