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A cable company would like to develop the ability to predict the monthly cable b

ID: 3367794 • Letter: A

Question

A cable company would like to develop the ability to predict the monthly cable bill for a customer. A multiple regression model was developed using a random sample of customers using three independent variables. The independent variables are TV? (the number of televisions in the? household), People? (the number of people living in the? household), and Years? (the number of years that the household has been a? customer). Complete parts a through c below.

ANOVA

df

SS

Regression

3

9505.44

Residual

36

7738.92

Total

39

17,244.36

Coefficients

Standard Error

Intercept

38.0044

15.8986

TV

10.5093

3.0075

People

7.6259

2.9937

Years

?0.8161

1.2669

1.Calculate the multiple coefficient of determination.

2. Identify the value of the test statistic.

3.Calculate the? p-value.

4. Calculate the adjusted multiple coefficient of determination.

ANOVA

df

SS

Regression

3

9505.44

Residual

36

7738.92

Total

39

17,244.36

Coefficients

Standard Error

Intercept

38.0044

15.8986

TV

10.5093

3.0075

People

7.6259

2.9937

Years

?0.8161

1.2669

Explanation / Answer

Ans:

1)Cofficient of determination,R^2=SSR/SST

=9505.44/17244.36

=0.5512 or 55.12%

2)

MS=SS/df

Test statistic:

F=MS(regression)/MS(residual)

F=3168.48/214.97=14.74

3)p-value=FDIST(14.74,3,36)=0.0000

4)N-1=39

N=39+1=40

number of perdictors,p=3

adjusted multiple coefficient of determination=1-((1-0.551)*(40-1)/(40-3-1))=0.5138 or 51.38%

df SS MS F Regression 3 9505.44 3168.48 14.74 Residual 36 7738.92 214.97 Total 39 17,244.36