Exhibit 16

question 41

Essay

Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.What is the regression equation that provides the best fit?

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Definitions:

Paired Two-sample T-test

A statistical test used to compare two population means where you have two samples in which observations in one sample can be paired with observations in the other sample.

Wilcoxon Signed Rank

The Wilcoxon Signed Rank Test is a non-parametric statistical test used to compare two related samples, matched samples, or repeated measurements on a single sample to assess differences in their population mean ranks.

Normally Distributed

Describes a statistical distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence.

F-distribution

A probability distribution used in analysis of variance (ANOVA), depicting ratios of variances to assess the significance of group differences.