Data were collected on annual income, household size, and annual credit card charges for a sample of 50 consumers.

ME International Bank is trying to investigate consumer characteristics that can be used to predict the amount charged by credit card users. Data were collected on annual income, household size, and annual credit card charges for a sample of 50 consumers.

Question 1

Use the attached data file to

  • Develop an estimated regression equation with annual income and household size as the independent variables.
  • Comment on whether the estimated regression equation provide a good fit to the data.
  • The predicted annual credit card charge for an average customer.

Question 2

Provide a brief summary report for your manager indicating

  • Summary statistics of consumer characteristics evident from the data set.
  • An overview of which of the two independent variables is a better predictor of annual credit card charges.
  • The
    predicted annual credit card charge for an average customer.