MODEL 2- include the variable household size to explain credit card amount a. (2
ID: 3334014 • Letter: M
Question
MODEL 2- include the variable household size to explain credit card amount a. (2pt)Comment on the goodness of fit for Model 2. Model 2- Model Summary Adjusted RStd. Error of Model R R SquareSquare the Estimate 818 398.091 826 a. Predictbrs: (Constant), Income; HouseholdSize b. (2pt) Report the statistical significance of the model. c. (1pt) Write down the estimated regression equation for Model 2. Model 2-Coefficients Coefficients Coefficients td.Error Beta t Sig. 6.602134 .664110.732 024 Model (Constant HouseholdSize Income 1304.905 197 356.296 33.201 33.133 3. 516 8.350 056Explanation / Answer
a) R^2 = 0.909
which is more than 0.80
hece it is good fit
c) creditCardamount^ = 1304.905 + 356.296 *Household + 33.133*Income
d) when income = 0 and when Household size = 0 then on average creditCardamount = 1304.905
e) slope coefficients
when we increase householdsize by 1 unit, creditCardamount increases by 356.296 units on average
similarly when we increase income by 1 unit, creditCardamount increase by 33.133 units on average
f)
assuming level of significance = 0.05
when p-value < 0.05
the coefficients are significant
here HouseholdSize is significant
Income is not significant
g) as the coefficient of householdsize is significant, it is important for explaining the creditCardamount in the model
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