Question

A study was done to determine whether the gender of the credit card holder was an important factor in generating profit for a certain credit card company. The variables considered were income, the number of family members, and the gender of the card holder. The data are as follows: 6 Family Profit Income Gender Members -181 55,000 25345,800 158 38,000 75,000 20299,750 28,000 146 39,000 8954,350 32,500 36,750 42,500 5 34,250 177 36,750 24,500 251 27,500 18,000 453 24,500 28888,750 104 19,750 -451 -357 522 123 (a) Fit a linear regression model using the variables available. Based on the fitted model, would the company prefer male or female customers? (b) Would you say that income was an important factor in explaining the variability in profit?

Answer 1

Gfven hat was an Poo Hese we Exel technalory ordes o f a omodel to he given data ata set, The pouxe r as fallei ) Enter the data eadshet 2)Soleet Data from the memu..and Data tral sVr ) Finady cick ok

SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Squar 0.17766 Standard Eror 227.536 Observations 0.55453 0.30751 20 ANOVA MS F Significanc F Regression Residual Total 3 367839.5875 122613 2.36829 0.10907 16 828365.2125 51772.8 19 1196204.8 r 95% 298.5994 0.0112 -2.3245 60.9053 CoefficientStandard Error t Stat P-value Lower 95% U Intercept Income Gender Family members -49.24 51.9579 0.9477 0.35738 -159.3862 0.0795 126.6660 0.23747 0.81531 -238.4403 0.00543 0.0027 1.98206 006492 0.000 236.73110.5716 2.1409 0.04802 -471.1270

ndent vaiakl come, Gerdes and fanily membe ss Poafil -3o+ o.pays (ncme)-236end as, y)fahily member

(a) f on the aloe畊叫 deve that the Hese the egsef he talegaial value gender Crnaleed, and femalesD), then ende emale ceurtonexs leve of giffanee.thi Conclude hat Inceme a ratan n e