Mathematics, 10.03.2020 06:59 needhelpwithHW10
An analyst at a credit card bank is looking at the relationship between customers' charges to the bank's card in two successive months. He selects 20 random customers, regresses charges in March ($) on charges in February ($), and finds an R^2 of 94%. He concludes that the model is a useful one for predicting one month's charges from the other. Examine the accompanying data and comment on his conclusions.
Select the correct choice below and fill in any answer boxes to complete your choice
a. There are two outliers that inflate R2 Without those topon R^2 drops from 85% to % .The analyst should set aside those two customers and refit the model.
b. The analyst's conclusion is only somewhat correct. The linear model can be used, but only to predict March charges using February charges
c. There are two outliers that decrease R^2 Without those two points R^2 increases from 86% to %. The analyst should set aside those two customers and use the new model. Round to the nearest integer as needed.)
d. The analyst's conclusion is correct.
Answers: 1
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An analyst at a credit card bank is looking at the relationship between customers' charges to the ba...
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