MODEL 2- include the variable household size to explain credit card amount a. (2

Question

MODEL 2- include the variable household size to explain credit card amount a. (2pt)Comment on the goodness of fit for Model 2. Model 2- Model Summary Adjusted RStd. Error of Model R R SquareSquare the Estimate 818 398.091 826 a. Predictbrs: (Constant), Income; HouseholdSize b. (2pt) Report the statistical significance of the model. c. (1pt) Write down the estimated regression equation for Model 2. Model 2-Coefficients Coefficients Coefficients td.Error Beta t Sig. 6.602134 .664110.732 024 Model (Constant HouseholdSize Income 1304.905 197 356.296 33.201 33.133 3. 516 8.350 056

Explanation / Answer

a) R^2 = 0.909

which is more than 0.80

hece it is good fit

c) creditCardamount^   = 1304.905 + 356.296 *Household + 33.133*Income

d) when income = 0 and when Household size = 0 then on average creditCardamount = 1304.905

e) slope coefficients

when we increase householdsize by 1 unit, creditCardamount increases by 356.296 units on average

similarly when we increase income by 1 unit, creditCardamount increase by 33.133 units on average

f)

assuming level of significance = 0.05

when p-value < 0.05

the coefficients are significant

here HouseholdSize is significant

Income is not significant

g) as the coefficient of householdsize is significant, it is important for explaining the creditCardamount in the model

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