Consumer Research, Inc.

This assignment it’s all about STATISTICS OF MANAGEMENT

Consumer Research, Inc.
Consumer Research, Inc., is an independent agency that conducts research on
consumer attitudes and behaviors for a variety of firms. In one study, a client asked for
an investigation of consumer characteristics that can be used to predict the amount
charged by credit card users. Data were collected on annual income, household size,
and annual credit card charges for a sample of 50 consumers. The following data
appear in the file named Consumer.
Sample data from the file
Income ($1000s) Household Size Amount Charged ($)
54 3 4016
30 2 3159
32 4 5100
50 5 4742
31 2 1864
55 2 4070
37 1 2731
40 2 3348
.. .. ..
.. .. ..
Please use the data file provided with the assignment to conduct your analysis.
Develop a Managerial Report and as a minimum include:
1. Use 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?
5. Discuss the need for other independent variables that could be added to the model.
What additional variables might be helpful?

“Income
($1000s)”    “Household
Size”    “Amount
Charged ($)”
54    3    4,016
30    2    3,159
32    4    5,100
50    5    4,742
31    2    1,864
55    2    4,070
37    1    2,731
40    2    3,348
66    4    4,764
51    3    4,110
25    3    4,208
48    4    4,219
27    1    2,477
33    2    2,514
65    3    4,214
63    4    4,965
42    6    4,412
21    2    2,448
44    1    2,995
37    5    4,171
62    6    5,678
21    3    3,623
55    7    5,301
42    2    3,020
41    7    4,828
54    6    5,573
30    1    2,583
48    2    3,866
34    5    3,586
67    4    5,037
50    2    3,605
67    5    5,345
55    6    5,370
52    2    3,890
62    3    4,705
64    2    4,157
22    3    3,579
29    4    3,890
39    2    2,972
35    1    3,121
39    4    4,183
54    3    3,730
23    6    4,127
27    2    2,921
26    7    4,603
61    2    4,273
30    2    3,067
22    4    3,074
46    5    4,820
66    4    5,149