Lowes, a home Improvement retaller, has authorized its marketing research depart
ID: 3266409 • Letter: L
Question
Lowes, a home Improvement retaller, has authorized its marketing research department to make a study of customers who have been Issued a Lowes charge card. The marketing research department hopes to identify the significant variables that explain the variation in purchases once these variables are determine the epartment i tend Sto ·t attract ne . us mens who would be predicted to make a high volume of purchases. Twenty-five customers were selected at random, and values for the following variables were recorded: y Average monthly purchases (In dollars) at Lowes customer age Customer family Income x2 X2 = Customer family income x Family size X,-Family size Part of the data appear In the Excel worksheet below. A regression model was developed using this sample data. The partial data and Excel regression output are provided below. Use this output to answer questions the questions that follow.Explanation / Answer
Answer:
Df for total = 24 df for regression =3 , df for error = 24-3=21
Critical value for rejection H is |t| >2.080
Test statistic t = -8.723322293/7.495492501 =-1.16381
= -1.164
Do not reject Ho.
No.
Dependent variable is Family income and correlation is 0.46
t value for 98% CI =2.518
98% lower limit = -8.723322293-2.518*7.495492501 = -27.60
98% upper limit = -8.723322293+2.518*7.495492501 = 10.15
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