This information is for banking customers: Using the checking account balance as

Question

This information is for banking customers:

Using the checking account balance as the dependant variable and separately the number of ATM transactions, the number of other servies used, whether the individual has a debit card, and whether interest is paid on a particular account as the independent variables, prepare a recommendation of which variables seem most related to the account balances and how well they explain the variation in account balances.

Balance ATM Services Debit Interest City 2215 20 3 1 0 4 740 6 3 0 0 3 1169 6 4 0 0 4 2276 15 4 1 0 3 748 9 2 1 0 1 1053 8 4 1 0 3 1886 17 3 0 1 1 1756 13 4 0 1 2 343 7 2 0 0 1 2144 17 3 0 0 3 137 7 2 0 0 3 1474 12 7 1 0 1 1746 11 2 0 0 2 1995 10 7 0 0 2 1494 11 2 0 1 1 1913 6 5 0 0 1 2557 20 7 1 0 4 1554 12 6 1 0 3 1501 10 1 0 0 1 1831 10 4 0 1 3 167 5 4 0 0 4 1120 8 6 1 0 3 1218 10 3 1 0 1 1622 14 6 0 1 4 1526 8 4 0 1 2 1593 10 8 1 0 1 1006 12 4 0 0 1 1838 7 5 1 1 3 2125 18 6 0 0 2 1616 10 4 1 1 2

Explanation / Answer

The relationship betwwen one of the dependent variable and several independent variable can be found by computing regression analysis.

Regression Analysis: Balance versus ATM, Services, Debit, Interest

Analysis of Variance

Source DF Adj SS Adj MS F-Value P-Value
Regression 4 6719219 1679805 10.11 0.000
ATM 1 4480848 4480848 26.98 0.000
Services 1 672623 672623 4.05 0.055
Debit 1 2262 2262 0.01 0.908
Interest 1 454549 454549 2.74 0.111
Error 25 4152748 166110
Lack-of-Fit 24 4131530 172147 8.11 0.271
Pure Error 1 21218 21218
Total 29 1087 1967

Model Summary

S R-sq R-sq(adj) R-sq(pred)
407.566 61.80% 55.69% 46.83%

Coefficients

Term Coef SE Coef T-Value P-Value VIF
Constant -34 259 -0.13 0.896
ATM 95.8 18.5 5.19 0.000 1.05
Services 90.8 45.1 2.01 0.055 1.16
Debit 19 166 0.12 0.908 1.19
Interest 284 172 1.65 0.111 1.04

Regression Equation

Balance = -34 + 95.8 ATM + 90.8 Services + 19 Debit + 284 Interest

R2 = 61.80% means adequacy of the fitted model is good.

There is maximum relation between ATM & Balance as coefficient of ATM is 95.8 which maximum among remaining variables.

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