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Stats Report

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Submitted By snotbox954
Words 2460
Pages 10
Linear Regression Analysis
Aarian Charania
Professor Habibullah
Section: 8am

Introduction
The independent research company Consumer Research, Inc. conducted research and collected data of annual income and household size, and annual credit card charges. In this report I plan find how much our independent variables (household size and income) affects our dependent variable annual credit card charges. By using descriptive statistics such as mean and standard deviation in order to look at each variable separately. After I will use linear regression to compare two or three variables and see how each variable affects one another. In the end I plan to decide which variable is the most effective in predicting annual credit charges. As the research is limited throughout the report suggestions for improvement such as implementation of new independent variables will be included. This will hopefully lead to a improvement in the model which we already have created by using the data given.

Questions
For all three data sets the data is spread significantly. This is due to standard deviation being a huge percentage of the mean. In relation to skewness, all three have different distributions; for example the income data is uniformly distributed. However the household size data is skewed to the right, this means that the mean is greater than its median. The amount charged seems to be normally distributed. Amount charged has the greatest mean and household size has the smallest.
(All data used in this analysis can be found in the appendix)

Amount Charged vs. Annual Income

According to the equation the Y value would be the amount charged (dependent variable) and the X value would be the annual income (independent variable)
Looking at the results of regression we see that the Model is Significant with more than a 95% confidence level. According to the Residual

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