Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes 1 answer below »

Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes 1 answer below »

Consumer Research, Inc., is an independent agency that conducts research on consumer attitudesand behaviors for a variety of firms. In one study, a client asked for an investigation ofconsumer 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 asample of 50 consumers. The following data are contained in the file named Consumer.Income Household Amount Income Household Amount($1000s) Size Charged ($) ($1000s) Size Charged ($)54 3 4016 54 6 557330 2 3159 30 1 258332 4 5100 48 2 386650 5 4742 34 5 358631 2 1864 67 4 503755 2 4070 50 2 360537 1 2731 67 5 534540 2 3348 55 6 537066 4 4764 52 2 389051 3 4110 62 3 470525 3 4208 64 2 415748 4 4219 22 3 357927 1 2477 29 4 389033 2 2514 39 2 297265 3 4214 35 1 312163 4 4965 39 4 418342 6 4412 54 3 373021 2 2448 23 6 412744 1 2995 27 2 292137 5 4171 26 7 460362 6 5678 61 2 427321 3 3623 30 2 306755 7 5301 22 4 307442 2 3020 46 5 482041 7 4828 66 4 5149Managerial Report1. Use methods of descriptive statistics to summarize the data. Comment on the findings.2. Develop estimated regression equations, first using annual income as the independentvariable and then using household size as the independent variable. Which variableis the better predictor of annual credit card charges? Discuss your findings.3. Develop an estimated regression equation with annual income and household sizeas the independent variables. Discuss your findings.4. What is the predicted annual credit card charge for a three-person household withan 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?

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