Case 1:

1. Use the methods of descriptive statistics to summarize the data. Comment on the findings.
2. Develop estimated regression equations, first using annual income as the independent variable and then using household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss your findings.
3. Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings.
4. What is the predicted annual credit card charge for a three-person household with an annual income of $40,000?

1. Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful?

Case 2:

Managerial Report

Use the methods presented in this and previous chapters to analyze this date set. Present a summary of your analysis, including key statistical results, conclusions, and recommendations, in a managerial report. Include any technical material you feel is appropriate in an appendix. (Basically similar to Case 1).

*Just so you know what we have covered in previous chapters:

Discrete probability distribution

Normal probability distribution

Sampling distribution

Interval estimation

Hypothesis testing

Hypothesis testing on two means

Simple and Multiple regression analysis.

There is a background story with case 2, which may or not contain any useful info for you. Here it is:

Predicting student proficiency test scores

In order to predict how a school district would have scored when accounting for poverty and other income measures, The Cincinnati Enquirer gather data from the Ohio Department of Education's education management service and the Ohio Department of Taxation (Nov 30, 1997).

First, the newspaper obtained passage-rate data on the math, reading, science, writing and citizenship proficiency exams given to 4 ^th , 6 ^th and 12 ^th graders in 1996. By combining these data, they computed an overall percentage of students that passed the tests for each district.

The percentage of a school district's students on Aid for Dependent Children (ADC), the percentage who qualify for free or reduced-price lunches, and the district's median family income were also recorded. A portion of the data collected for the 608 school districts follows (see attached Enquirer spreadsheet).

The data have been ranked based on the values in the column labeled % Passed; these data are the overall percentage of students passing the tests. Data in the column labeled % on ADC are the percentage of each school district's students on ADC, and the data in the column labeled % Free lunch are the percentage of students who qualify for free or reduced price lunches. The column labeled median income shows each district's median family income. Also shown for each school district is the county in which the school district is located. Note that in some cases the value in the % Free Lunch column is 0, indicating that the district did not participate in the free lunch program.

Price: $16.56

Solution: The downloadable solution consists of 7 pages, 956 words and 1 charts.
Deliverable: Word Document