3

a. Construct a frequency distribution for these data

5 b. Provide the cumulative frequency distributions
2 c. Construct a histogram for these data
5
5 10 Marks
3
2
6
2 A and B Min 0 Limits Frecuency
2 Max 7 0 2
0 1 1
2 2 13
4 3 16
4 4 11
0 5 10
5 6 4
5 7 3
2
4
2 C
3
5
Frequency
2
3 18

6 16
5 14
4
12
3
10
2
7 8
3 6
7 4
3
2
4
5 0
0 1 2 3 4 5 6 7
3
3
5
6
4
4
3
2
3
3
3
2
6
2
4
4
5
2
1
3
4
7
3
4
3
 Monthly Income Monthly Amount Super Markets is considering expanding into
1 $4,388 $555 planning must present an analysis of the pro
proposal, she need to include information on
2 4558 489 grocery items. She would also like to include
3 4793 458 for grocery items and income. She gathered
4 4856 613
5 4856 647 a. Create a scatter diagram
b. Determine the regression equation
6 4899 661 c. Interprete the slope value
7 4899 662 d. Determine the correlation coefficient. Inte
8 5091 675 e. On the basis of these data, would you reco
9 5133 549 20 Marks
10 5304 606
11 5304 668
12 5304 740
13 5346 592
14 5495 720
15 5581 680
16 5730 540
17 5943 693
18 5943 541
19 6156 673
20 6603 676

Customers Data
$800
$700
$600
Monthlly Expense

$500
$400
$300
$200
$100
$0
$4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000
Monthly Income

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.376231
R Square 0.14155
Adjusted R Squar 0.093858
Standard Error 74.07244
Observations 20

ANOVA
df SS MS F Significance F
Regression 1 16284.74 16284.74 2.968025 0.102062
Residual 18 98761.06 5486.726
Total 19 115045.8

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Intercept 345.002 161.5771 2.135216 0.046741 5.54105 684.463 5.54105
X Variable 1 0.052155 0.030274 1.722796 0.102062 -0.011447 0.115758 -0.011447

B Y =0.052155*X + 345.002

C The slope its telling us that around 5% of the customers income is going to their expense on groce

D 0.376231 This indicate that the relationship between income and expense is not very

E For me with the slope values and the correlation interpretation its not enough to recom
 kets is considering expanding into the Northwest Territories. Luann Miller, the director of
must present an analysis of the proposed expansiion to the board of directors. As part of her
he need to include information on the amount people in the region spend per month on
ms. She would also like to include information on the relationship between the amiount spent
items and income. She gathered the following data:

scatter diagram
ne the regression equation
te the slope value
ne the correlation coefficient. Interprete your findings.
basis of these data, would you recommend the expansion? Explain
 Upper 95.0%
684.463
0.115758

is going to their expense on groceries + the 345 of the variance value

n income and expense is not very strong since its not close to 1, but in a middle point since its also not so close to -1

rpretation its not enough to recommend the expansion, since althoug customers may have higher income their expense its not increased
heir expense its not increased by that much
 House Years of Mortgage
Income Age Gender
Value Education Payment

$40,300 $190,000 14 53 $230 1

39,600 121,000 15 49 370 1
40,800 161,000 14 44 397 1
40,300 161,000 14 39 181 1
40,000 179,000 14 53 378 0
38,100 99,000 14 46 304 0
40,400 114,000 15 42 285 1
40,700 202,000 14 49 551 0
40,800 184,000 13 37 370 0
37,100 90,000 14 43 135 0
39,900 181,000 14 48 332 1
40,400 143,000 15 54 217 1

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.92905
R Square 0.863134
Adjusted R 0.74908
Standard E 570.07
Observatio 12

ANOVA
df SS MS F Significance F
Regression 5 12296788 2459358 7.567725 0.014307
Residual 6 1949879 324979.8
Total 11 14246667

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 22751.75 8912.596 2.552764 0.043329 943.4153 44560.09 943.4153 44560.09
X Variable 0.030299 0.009297 3.258956 0.017271 0.00755 0.053049 0.00755 0.053049
X Variable 1134.466 688.1622 1.648544 0.150337 -549.4066 2818.338 -549.4066 2818.338
X Variable -92.08357 45.51279 -2.023246 0.089497 -203.4494 19.28222 -203.4494 19.28222
X Variable 1.618301 2.161514 0.748688 0.482352 -3.670734 6.907335 -3.670734 6.907335
X Variable 349.3987 589.22 0.592985 0.574845 -1092.371 1791.168 -1092.371 1791.168
RESIDUAL OUTPUT

ObservationPredicted Y Residuals
1 40232.29 67.71287
2 39871.01 -271.0095
3 40452.62 347.3793
4 40563.49 -263.4857
5 39789.11 210.8935
6 37890.01 209.993
7 40165.95 234.055
8 41134.29 -434.2867
9 40266.53 533.473
10 37620.07 -520.0728
11 40585.08 -685.0795
12 39829.57 570.4275
 The mortage department of a financial institution is tudying its recent loans. Of particular
interest is how such factors as the value of the home, education level of the head of the
household, age of the head of the household, current monthly mortgage payment, and
gender of the head of the household (male=1, female=0) relate to family income. Are these
effective predictors of the income of the household? A random sample of 12 recent loans is
obtained.

a. Determine the regressiion equatiion (Providing the regression and anova output)
b. What is the value of R squared? Comment on the value
c. List the intercepts and the coefficients for the independent variables
d. Provide an interpretation for each coeffient of the independent variable relative to the
dependent variable
e. Comment on the finding of this study.

20 Marks

Upper 95.0%