# Math 533 Part 3

Satisfactory Essays
481 Words
Grammar
Plagiarism
Writing
Score
Math 533 Part 3
Course Project Part Three
Professor Douglas Nottingham
March 27, 2014

1. Generate a scatterplot for CREDIT BALANCE vs. SIZE, including the graph of the "best fit" line. Interpret.

The larger the size of the family the larger the credit balances is for the family. The larger families have the financial needs to have a larger credit balance.
2. Determine the equation of the "best fit" line, which describes the relationship between CREDIT BALANCE and SIZE.
Credit Balance (\$) = 2591 + 403.2 Size
3. Determine the coefficient of correlation. Interpret.
The square root of R-Squared = .566 equals R; R = .75
4. Determine the coefficient of determination. Interpret.
The R-Squared is .566. The R-Squared is stating that 56.6% of the data is correct which indicates that the percentage of the total sample variation of the credit balance value is accounted for by the model.
5. Test the utility of this regression model (use a two tail test with α =.05). Interpret your results, including the p-value.
Regression Analysis: Credit Balance (\$) versus Size

The regression equation is
Credit Balance (\$) = 2591 + 403 Size

Predictor Coef SE Coef T P
Constant 2591.4 195.1 13.29 0.000
Size 403.22 50.95 7.91 0.000

The p-value is 0.000 and therefore less than the α=.05 and we reject the Ho because there was not enough evidence too.
6. Based on your findings in 1-5, what is your opinion about using SIZE to predict CREDIT BALANCE? Explain.
The finding that I have from 1-5 that there is a slight positive relationship between the size and credit balance and the reason for this would be because of the prediction of the model for the credit balance to be within 260.162 x2 (520.32)
7. Compute the 95% confidence interval for beta-1 (the population slope). Interpret this interval.

Coefficients

Term Coef SE Coef T P 95% CI
Constant

## You May Also Find These Documents Helpful

• Good Essays

The 3rd individual variable considered is CREDIT BALANCE which is also a quantitative variable. The measures of central tendency and variation have also been calculated as follows:…

• 596 Words
• 3 Pages
Good Essays
• Good Essays

6. Determine the value of the Correlation Coefficient. [Remember that the r is the square root of r2] Comment on how well the regression line fits the data.…

• 398 Words
• 2 Pages
Good Essays
• Powerful Essays

The location of AJ Davis’ customers is distributed between three classes of urban, suburban and rural areas. Of the total number of customer locations in the sample set of 5; 13 are located in rural, 15 in suburban and 22 in urban locations. The pie chart shows that just less than half of all AJ Davis’ customers live in urban (44%) areas, yet customers that live in rural (26%) and suburban (30%) areas are relatively evenly distributed. The rural and suburban areas combine to compromise 56% of AJ Davis’ credit customer base in which they are interested in. This should be useful information to AJ Davis as about half of their credit customers are from urban locations.…

• 1256 Words
• 6 Pages
Powerful Essays
• Satisfactory Essays

The 3rd individual variable considered is Credit Balance. It is a quantitative variable. The methods of central tendency, variation and other descriptive statistics have been analyzed for this variable…

• 654 Words
• 3 Pages
Satisfactory Essays
• Good Essays

Based on your findings in 1-5, what is your opinion about using SIZE to predict CREDIT BALANCE? Explain. We can expect the model to prediction of credit balance to be within 260.162 x2 (520.32)…

• 633 Words
• 3 Pages
Good Essays
• Good Essays

Question 1 (8 points) Answer the following two independent multiple choice questions. Clearly circle your answer. a) (4 points) A firm’s customers are cash constrained and can borrow from the bank at 18% per year. Other things equal (e.g., assuming no changes in sales), if the firm changes the terms of credit it offers to its customers from “1/15 net 40” to “2/10 net 50”, then the firm’s Accounts Receivable Period will _______________. A. decrease B. increase C. either increase or decrease D. stay the same E. none of the above Answer: A. With “1/15 net 40”, EAR = (1 + 1/99)365/25 – 1 = 15.8% < 18%. So, before the change in credit policy, customers…

• 3014 Words
• 13 Pages
Good Essays
• Better Essays

P-value is 0.000; this means that there is extremely strong evidence of a relationship between the price of a used Mustang and the mileage of the car. We used the critical value F.05 based on 1 numerator and 33 denominator degrees of freedom. From the F table we find that at 95% critical value for Price vs. Miles = 4.139 while F = 42.34. Since the F (model) for Price vs. Miles = 42.34 which is greater than F.05 =4.139 we can reject the null hypothesis in favor of the alternative hypothesis at level of significance 0.05. The test tells us that if we reject the null hypothesis then we have evidence of a relationship between the prices vs. Miles of the used Mustangs. The Small P-value for the F test is evidence of a significant relationship between the…

• 1667 Words
• 7 Pages
Better Essays
• Powerful Essays

The research in this report was taken from a few different sources. The primary research was conducted by distributing a survey to the general public. The survey was designed to help us understand how much people actually know about their score. However, due to limited time and resources the survey was completed by only 20 people. The information provided by the survey was still useful despite the limitation on sample size. The secondary research was taken from websites, books, and training materials from the lending industry.…

• 2191 Words
• 9 Pages
Powerful Essays
• Satisfactory Essays

Consider the ski resort satisfaction data we used in class (“satisfaction.sav” in Week 7 folder). This is data based on a survey of 500 users of a ski resort. In class we did part of the analysis. In this question you will be asked to redo some of the analysis and complete the rest. For part a), b) and c), write down your null and alternative hypotheses and then discuss the hypothesis testing results based on SPSS output. Please show your SPSS output for part a), b), and c).…

• 1134 Words
• 5 Pages
Satisfactory Essays
• Satisfactory Essays

Process- Subtract the amount of credit used from the maximum credit and the result is the available credit.…

• 636 Words
• 3 Pages
Satisfactory Essays
• Satisfactory Essays

5. If F(3, 60) = 4.13, p = 0.04, and α = 0.01, is the result statistically signifi cant? Provide a rationale for your…

• 398 Words
• 2 Pages
Satisfactory Essays
• Satisfactory Essays

1. Find the simple regression equation for the relationship between Y & X1, and explain its meaning as well as the meaning of its slope and constant. What would you predict for X1=70% ?…

• 780 Words
• 4 Pages
Satisfactory Essays
• Good Essays

Credit reflects financial power. A higher credit score indicates that my current financial circumstances and historical behavior demonstrate how dependable, financially responsible, and trustworthy I am as a person. Therefore, the more lenders that find you financially responsible, the more financial freedom you will build. Credit reflects financial power. My credit score is the key to my financial future.…

• 1033 Words
• 5 Pages
Good Essays
• Powerful Essays

Focusing on the reasons showing significance, it can be observed that X4 and X6 are very significance.…

• 2835 Words
• 12 Pages
Powerful Essays
• Satisfactory Essays

REGRESSION R 的倍數 R 平方 調整的 R 平方 標準誤 觀察值個數 0.975871171 0.952324542 0.940405677 0.035744042 16…

• 957 Words
• 4 Pages
Satisfactory Essays