(A)Estimate the Regression Model

question 22

Essay

(A)Estimate the regression model.How well does this model fit the data?
(B)Is there a linear relationship between the explanatory variables and the dependent variable? Explain how you arrived at your answer at the 5% significance level.
(C)Use the estimated regression model to predict the amount of money a customer will spend if their annual salary is $45,000,they have 1 child and they were a customer that purchased merchandise in the previous year (2004).
(D)Find a 95% prediction interval for the point prediction calculated in (C).Use a t-multiple = 2.02.
(E)Find a 95% confidence interval for the amount of money spent by all customers sharing the characteristics described in (C).Use a t-multiple = 2.02.
(F)How do you explain the differences between the widths of the intervals in (D)and (E)?

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Definitions:

Libidinal Energy

A term from psychoanalytic theory referring to the psychic energy derived from instinctual biological drives, especially sexual desire.

Erogenous Zones

Areas of the human body that are particularly sensitive to stimulation and can lead to sexual arousal when touched or stimulated.

Psychosexual Development

Sigmund Freud's theory outlining how personality develops through a series of childhood stages in which the pleasure-seeking energies of the id focus on distinct erogenous zones.

Libidinal Energy

A term primarily used in psychoanalysis to denote the instinctual sexual drive or desire that motivates human behavior.