MINITAB

Using MINITAB perform the regression and correlation analysis for the data on INCOME (Y, the dependent variable) and CREDIT BALANCE (X, the independent variable) by answering the following.1.Generate a scatterplot for INCOME vs. CREDIT BALANCE, including the graph of the “best fit” line. Interpret. 2.Determine the equation of the “best fit” line, which describes the relationship between INCOME and CREDIT BALANCE. 3.Determine the coefficient of correlation. Interpret. 4.Determine the coefficient of determination. Interpret. 5.Test the utility of this regression model (use a two tail test with α =.05). Interpret your results, including the p-value. 6.Based on your findings in 1-5, what is your opinion about using CREDIT BALANCE to predict INCOME? Explain. 7.Compute the 95% confidence interval for beta-1 (the population slope). Interpret this interval. 8.Using an interval, estimate the average income for customers that have credit balances of $4,000. Interpret this interval. 9.Using an interval, predict the income for a customer that has a credit balance of $4,000. Interpret this interval. 10.What can we say about the income for a customer that has a credit balance of $10,000? Explain your answer. In an attempt to improve the model, we decide to do a multiple regression analysis predicting INCOME based on CREDIT BALANCE, SIZE and YEARS.11.Using MINITAB run the multiple regression analysis using the variables CREDIT BALANCE, SIZE and YEARS to predict INCOME. State the equation for this multiple regression model. 12.Perform the Global Test for Utility (F-Test). Explain your conclusion. 13.Perform the t-test on each independent variable. Explain your conclusions and clearly state how you should proceed. In particular, which independent variables should we keep and which should be discarded. If appropriate, re-run the multiple regression using only the significant independent variables and the dependent variable. Include your output and interpret it. 14.Is this multiple regression model better than the linear model that we generated in parts 1-10? Explain. 15.All DeVry University policies are in effect, including the plagiarism policy. 16.Project Part C report is due by the end of Week 7. 17.Project Part C is worth 100 total points. See grading rubric below. Summarize your results from 1-14 Data:Location Income ($1000) Size Years Credit Balance($)Urban 27 1 2 2631Rural 25 4 2 2047Suburban 25 1 1 3155Suburban 26 1 2 3913Rural 30 5 5 2660Urban 29 1 3 3531Rural 33 6 10 2766Urban 30 1 4 3769Suburban 32 2 4 4082Urban 34 1 6 3806Urban 35 1 8 4049Urban 40 1 9 4073Rural 30 6 9 2697Rural 33 6 11 2914Urban 42 2 10 4073Suburban 32 2 4 4310Urban 43 2 10 4199Urban 43 2 10 4253Rural 33 7 13 3104Urban 47 2 10 4293Subu rban 35 3 5 4456Urban 54 2 11 4340Suburban 42 3 5 4925Rural 36 7 13 3178Urban 57 3 11 4391Suburban 44 3 6 4947Rural 38 7 15 3203Urban 54 3 8 4354Urban 54 3 10 4366Suburban 46 4 6 5003Rural 40 7 15 3250Urban 60 4 11 4402Urban 58 4 10 4397Urban 61 5 13 4595Urban 61 5 13 4786Urban 62 6 14 4888Suburban 49 5 8 5148Urban 68 6 14 5011Suburban 57 6 8 5220Rural 45 8 16 3257Urban 71 7 15 5528Suburban 57 7 9 5283Suburban 64 8 9 5332Rural 45 8 17 3304Urban 74 7 19 5553Suburban 65 8 10 5484Rural 47 8 18 3342Rural 53 8 18 3788Suburban 66 8 10 5756Suburban 69 8 10 5861