Please correct the incorrect questions in this set xNew Tab For Questions 25-45,

Question

Please correct the incorrect questions in this set xNew Tab For Questions 25-45, consider the following scenario: An analyst for an ecommerce website would like to use a regression model to predict the total amount that customers spend per order. The analyst theorizes that three variables may help explain order total: income, time spent on the website prior to placing the order, and the number of days until Christmas. An a -0.05 significance level will be used for this analysis. The analyst randomly samples customers who have placed orders. Total Order Amount was measured in dollars, Income in thousands, Time Spent in minutes, and Days until Xmas in days. The data was used to estimate a regression model. The regression output is given below. SUMMARY OUTPUT Regression Statistics Multiple R 0.88012 R Square 0.77461 Adjusted R Square 0.77190 Standard Error 56.6927 Observations 253 ANOVA df MS Sign

Explanation / Answer

26. there is only 1 independent variable that is total order amount

3 are independent variables,income,days untill christmas,time spent .

28.confidence interval for b2 is give by ;( estimated b2-t0.05,249SE(b2), estimatedb2+t0.05,249SE(b2))

0.9409-1.9695*0.3612=0.2295

0.9409+1.9695*0.3612=1.6523

hence 95% confidence interval for b2 is(0.2295,1.6523)

now let x1=income

x2=time spent

x3=number of days

y=total order amount

then regression model is given by;

y=b0+b1x1+b2x2+b3x3

from the table,

b0=70.2382,b1=5.4585,b3=-0.8828,b2=0.9409

33.regression model is given by;

y=b0+b1x1+b2x2+b3x3+e

34. regression equation is given by the first option i,e,,y=70.2382+5.4585x1+0.9409x2-0.8828x3

36. as the coefficient for days untill christmas x3 is -0.8828

hence there is negative relationship between x3 and y(total order amount)

38. y=70.2382+5.4585(41500)+0.9409(27.5)-0.8828(171)

=9243.19 minutes(convert 171 days into minutes i.e.,246240 min)

39.we know that R2 tells the percentage of variability in dependent variablr(total order amount) that is explained by independent variables(income,time spent,days until christmas)

here R2=0.77461

so 77.46% of variability in total order amount is explained by income,time spent and days until christmas.

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