# Aj Davis Store Essay

590 WordsJan 25, 20153 Pages
AJ DAVIS Store Analysis of Credit Customers By A the credit balance goes up income increases. 2. Income(1,000)= 4.661 + .0098(Credit balance) 3. The coefficient of correlation is R=.63 this mean there is a fairy high correlation between the two variables. Correlation is between -1 and 1. The closer to Zero the number get mea ns less correlation. 4. The coefficient of determination is R-SQ=39.3% and means that 39.3% of the variations of income can be explained by credit balance. 5. We have sufficient evidence to reject the null hypothesis that the regression coefficient is zero, and accept that it’s not equal to zero. We have a P value of 0.00 and that is less than .05 so we reject the null hypothesis. 6. Credit balance is a good independent variable when trying to predict income. We can visually see a trend in the fitted line plot and it has a correlation of R=.63 7. Income (\$1000) = 4.66126 + 0.00984237 Credit Balance(\$) Coefficients Term Coef SE Coef T P 95% CI Constant 4.66126 7.20381 0.64706 0.521 (-9.82297, 19.1455) Credit Balance(\$) 0.00984 0.00177 5.56923 0.000 ( 0.00629, 0.0134) We are 95% certain that for each additional increase in credit balance for the population income will raise between .0062 , .0134 Predicted Values for New Observations New Obs Fit SE Fit 95% CI 95% PI 1 44.0307 1.63120 (40.7510, 47.3105) (20.6204, 67.4411) Values of Predictors for New Observations Credit New Obs Balance(\$) 1 4000 8. We are 95% certain that the average income for a customer with a credit balance of 4,000 is between (40.75, 47.31 9. We are 95% certain a customer with a customer and credit balance of 4000 will have an income between (20.62, 67.44) 10. It’s out of the range of our data set a we