Consume Research Inc
Income ($1000s) Household Size Amount Charged ($)
6232,9216424,6032234,2732943,0673923,0743512,9213944,6035434,2732363,0672723,0742674,8206125,1493022,4772242,5144654,2146644,9654264,4122122,4484412,9953754,1716265,6782133,6235575,3014223,0204174,8285465,5733012,5834823,8663453,5866745,0375023,6056755,3455565,3705223,8906234,7056424,1572233,5792943,8903922,9723513,1213944,1835433,7302364,127
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Residual analysis also shows no particular pattern and no problems of autocorrelation.Household
Size explains about 40% of the variation in Amount Charged.The Standard Error of the Estimate is
a quite significant portion of the possible predicted values within the range: it is about 16% of the
mode, and 33% of the minimum. This indicates that the error in the prediction using this regression
equation may be high, and I would consider this model unacceptable if I were the client of
Consumer Research, Inc. Annual Income is a slightlybetter predictor of Amount Charged, since it
does explain about 40% of the variationin Amount Charged, against only about 36% for Household
Size.SUMMARY OUTPUTRegression StatisticsMultiple R0.862318156R
Square0.743592603Adjusted R Square0.73268165Standard
Error476.1315166Observations50ANOVAdfSSMSFSignificance
FRegression230899839.8315449919.9168.151022021.28786E
14Residual4710654957.39226701.2211Total49
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