The following data lists age (x, in years) and FICO credit score (y) for 15 random...

Free

90.2K

Verified Solution

Question

Statistics

The following data lists age (x, in years) and FICO credit score(y) for 15 random credit card customers. At the 10% significancelevel, use Excel to test the claim that age and credit score arelinearly related by specifying the slope estimate, p-value andfinal conclusion below. Do not round any intermediate calculations.Round your slope estimate answer to 2 decimal places. Round yourp-value to 4 decimal places. Enter a \"âˆ’\" sign in front of anynegative answer.
Slope estimate =
p-value =
Final conclusion:
The data does not support the claim that age and credit scoreare linearly related.
The data supports the claim that age and credit score arelinearly related.
Age Credit Score
68 603
61 805
45 774
73 661
80 793
69 611
25 575
42 732
47 515
26 714
71 702
69 792
27 791
79 660
72 713

Answer & Explanation Solved by verified expert

4.0 Ratings (685 Votes)

Using Excel, go to Data, Select Data Analysis, choose Regression. Put Age in X input range and Credit score in Y input range. Put confidence level = 90

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.0627
R Square	0.0039
Adjusted R Square	-0.0727
Standard Error	93.1960
Observations	15

ANOVA
	df	SS	MS	F	Significance F
Regression	1	445.5950	445.5950	0.0513	0.8243
Residual	13	112911.3384	8685.4876
Total	14	113356.9333

	Coefficients	Standard Error	t Stat	P-value
Intercept	679.8155	75.6761	8.9832	0.0000
Age	0.2854	1.2602	0.2265	0.8243

Slope estimate = 0.29

p-value (Significance F) = 0.8243

H0: Age and credit score are not linearly related

H1: Age and credit score are linearly related

p-value = 0.8243

Since p-value is more than 0.10, we do not reject the null hypothesis.

The data does not support the claim that age and credit score are linearly related.

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member