Project C Davis Department

In: Business and Management

Submitted By joemoney1231
Words 1274
Pages 6
Keller University Math 533
Prof Ron Deluca
Project Part C AJ Davis Inc., Regression Analysis
June 18, 2016

Abstract: This is the final project C from Keller University math 533 using AJ Davis company data base provided in our doc sharing student portal. The bold questions are taken from Part C in the Project outline. My answer is underneath each of 14 questions. *Please note the formatting was difficult because Minitab fonts output is different than my desired Arial 12 point font.

From AJ Davis database from our class.
1. Generate a scatterplot for income ($1,000) versus credit balance($), including the graph of the best fit line. Interpret. note y=income, x=credit balance

Interpretation: The scatter plot of Income Vs Credit balance ($) show that the slope of the ‘best fit’ line is upward (positive); this indicates that Income varies directly with Credit Balance. As Income increases, Credit Balance also increases vice versa.

2. Determine the equation of the best fit line, which describes the relationship between income and credit balance.
Y= -3.516 + 0.01193(x)

3. Determine the coefficient of correlation. Interpret.
Correlations: Income ($1,000), Credit Balance($)

Pearson correlation of Income ($1,000) and Credit Balance($) = 0.801
P-Value = 0.000

The coefficient of correlation is given as r = 0.801. The correlation coefficients between the variables show a positive sign OR direct relationship. The correlation coefficient is far from the P-Value of 0.000. In this case, a p-value of 0.000 is extremely low. This means that there is an extremely low chance that Income and Credit Balance results are due to chance.

4. Determine the coefficient of determination. Interpret.
From minitab:
S = 8.40667 R-Sq = 64.1% R-Sq(adj) = 63.3%

The coefficient of determination, R-Sq = 0.641. The proportion of variability in a dataset that is…...

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