Consumer Research, Inc.

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