Question

December   January
1543.47   903.06
4296.15   7207.24
4229.96   4236.85
202.69   79.99
3296.93   4041.82
873.21   89.25
3812.03   3289.29
1932.82   2418.49
99.17   83.92
503.97   6.42
411.05   0.00
682.55   564.45
2161.01   2712.73
1124.99   186.99
2507.68   3262.37
1837.64   1525.17
9.94   1360.49
2333.51   733.98
78.63   75.08
101.31   70.26
598.44   634.39
648.23   1042.22
235.96   554.09
1267.16   1016.15
2124.18   1304.17
3.66   249.61
306.05   48.73
1900.26   872.97
559.58   485.61
2445.76   616.65
2799.59   1575.21
531.44   422.63
537.23   770.56
766.99   56.54
1959.23   1485.17
1679.34   495.98
2064.97   1065.45
396.87   510.34
5637.86   5646.55
5.50   5.50
2277.85   871.36
3819.25   1634.32
89.19   92.21
1451.29   669.76
527.98   829.32
105.78   69.22
1404.14   831.31
4231.52   2300.92
633.06   270.29
970.84   210.44
348.06   1012.91
0.00   1044.23
50.03   298.29
29.99   -30.03
471.61   1636.71
1116.91   1731.14
70.65   0.00
31.07   31.41
4.95   4.95
2523.54   1088.03
16.95   26.91
40.51   120.17
259.12   2008.86
123.09   291.22
0.00   103.91
109.78   52.98
5054.78   2841.46
3675.04   675.06
139.74   221.52
76.08   37.79
3151.96   533.46
2990.22   1933.04
650.77   692.81
9115.51   6801.42
917.49   393.21
2876.05   1307.78
797.82   796.73
34.57   0.00
44.18   1040.84
478.49   565.69
762.12   339.45
2351.94   5273.81
44.31   40.07
43.32   43.36
1338.75   653.67
1127.62   1070.54
2802.79   2336.88
52.16   91.47
1293.43   1433.96
328.56   720.52
28.34   28.61
598.89   980.71
4283.05   1575.84
567.51   0.00
480.11   161.98
1617.13   494.01
285.41   533.44
1284.93   462.52
3759.57   1479.34

Spending on credit cards decreases after the Christmas spending season (as measured by amount charged on a credit card in December). The accompanying data set contains the monthly credit card charges of a random sample of 99 cardholders. Complete parts a) through e) below. EEB Click the icon to view the monthly credit card charges. a) Build a regression model to predict January spending from December's spending Jan 120.8494 0.6994 Dec (Round to four decimal places as needed.) Check the conditions for this model. Select all of the true statements related to checking the conditions. A. All of the conditions are definitely satisfied. B. The Linearity Condition is not satisfied. C. The Randomization Condition is not satisfied. D. The Equal Spread Condition is not satisfied. E. The Nearly Normal Condition is not satisfied. b) How much, on average, will cardholders who charged $2000 in December charge in January? 1519.65 (Round to the nearest cent as needed.)

Spending on credit cards decreases after the Christmas spending season (as measured by amount charged on a credit card in December). The accompanying data set contains the monthly credit card charges of a random sample of 99 cardholders. Complete parts a) through e) below. EEB Click the icon to view the monthly credit card charges. a) Build a regression model to predict January spending from December's spending Jan 120.8494 0.6994 Dec (Round to four decimal places as needed.) Check the conditions for this model. Select all of the true statements related to checking the conditions. A. All of the conditions are definitely satisfied. B. The Linearity Condition is not satisfied. C. The Randomization Condition is not satisfied. D. The Equal Spread Condition is not satisfied. E. The Nearly Normal Condition is not satisfied. b) How much, on average, will cardholders who charged $2000 in December charge in January? 1519.65 (Round to the nearest cent as needed.)

Answer 1

a)

The regression equation is
January^ = 120.8494 + 0.6994 December

Residual Plots for January Normal Probability Plot Versus Fits 90 2000 2 50 10 2000 0.1 2000 1500 3000 4500 6000 Residual Fitted Value Histogram Versus Order 40 30 2000 20 10 2000 -2000-1000 0 1000 2000 3000 4000 Residual 1 10 20 30 40 50 60 70 80 90 Observation Order

Using the above plots, the true statements from the given list of statements are B, C, D, and E.

b) The average changed in January by changing $2000 on December is

January^ = 120.8494 + 0.6994 *2000 =1519.65