Question

American Express Company has long believed that its cardholders tend to travel more extensively than others-both...

American Express Company has long believed that its cardholders tend to travel more extensively than others-both on business and for pleasure. As part of a comprehensive research effort undertaken by a New York marketing research firm on behalf of American Express, a study was conducted to determine the relationship between miles traveled (x) and charges made on the American Express card (y). Eight cardholders were randomly selected and their total charges recorded for a specified period. A questionnaire was then mailed to these five cardholders requesting information on the number of miles traveled during this time period. The data follow.

Sick Days & Age

Cardholder Miles (1,000's) Charges ($1,000's) 1 1.2 2 2 2.0 3 3 1.5 2.3 4 2.3 2.3 5 1.7 2.3 6 0.5 2.7 7 2.1 2.1 8 0.8 3.4

A regression Analysis has been performed to estimate the model and the output is given.

Regression Statistics

Multiple R 0.40306 R Square 0.16246 Adjusted R Square 0.02287 Standard Error 0.47682 Observations 8





ANOVA
df SS MS F Significance F
Regression 1 0.26460 0.26460 1.16380 0.32213
Residual 6 1.36415 0.22736
Total 7 1.62875
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 2.97185 0.45796 6.48933 0.00064 1.85126 4.09244
Miles -0.30370 0.28152 -1.07879 0.32213 -0.99255 0.38515

Step 2 of 4:

What fraction of the variation in credit card charges is explained by miles traveled? (Report as a decimal fraction to 2 decimal places.)

Step 3 of 4:

What is the predicted value of credit card charges (in thousands of dollars) if the cardholder traveled 2 thousand miles? (Report to 1 decimal place.)

Step 4 of 4:

Determine the 95% confidence interval for the average credit card charges, given that the cardholder traveled 2 thousand miles. (Report answer to 2 decimal places.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
American Express Company has long believed that its cardholders tend to travel more extensively than others-both...
American Express Company has long believed that its cardholders tend to travel more extensively than others-both on business and for pleasure. As part of a comprehensive research effort undertaken by a New York marketing research firm on behalf of American Express, a study was conducted to determine the relationship between miles traveled (x) and charges made on the American Express card (y). Eight cardholders were randomly selected and their total charges recorded for a specified period. A questionnaire was then...
American Express Company has long believed that its cardholders tend to travel more extensively than others-both...
American Express Company has long believed that its cardholders tend to travel more extensively than others-both on business and for pleasure. As part of a comprehensive research effort undertaken by a New York marketing research firm on behalf of American Express, a study was conducted to determine the relationship between miles traveled (x) and charges made on the American Express card (y). Eight cardholders were randomly selected and their total charges recorded for a specified period. A questionnaire was then...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...