Question

9. Using Excel run the multiple regression analysis using the variables INCOME, SIZE and YEARS to predict CREDIT BALANCE. State the equation for this multiple regression model. 10. Perform the Global Test for Utility (F-Test). Explain your conclusion. 11. Perform the t-test on each independent variable. Explain your conclusions and clearly state how you should proceed. In particular, which independent variables should you keep and which should you discard if any. 12. Is this multiple regression model better than the linear model that you generated Reliable Housewares is a local store that sells many household items and issues its own credit card to its customers. The store manager wants to study the purchasing behavior of its "credit" customers. To that end, he has come to DeVry and asked our MBA students for help. The manager has brought with him data on five variables of 55 randomly selected credit customers.  LOCATION (Rural, Urban, Suburban – Household location of the credit customer)  INCOME (in $1,000's – be careful with this)  SIZE (Household Size - number of people living in the household of credit customer)  YEARS (the number of years that the customer has lived in the current location)  CREDIT BALANCE ($ balance on customer’s store credit card)

Answer 1