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Submitted By ddoming1
Words 2022
Pages 9
Project Part C

AJ Department Stores

Understanding many variables and also understanding the correlation between them we need to do a correlation analysis and also to get a deeper understanding in what really affects the credit balances in AJ department stores we need to do a regression analysis to help us get to 100% confidence in making the right decisions.
We did a scatter plot to help us understand the relationship between credit balance and size and we found that we can see there is a direct relationship with credit balance. We can expect a decrease of -2.3 and we can see that an increase of .14% in size.
We were able to Determine the coefficient of correlation r= 0.753 which means that we have a strong direct linear relationship between size and credit balance.
We also found that 56.68% of the variability in credit balance is explained by size in the house hold through our index of determination.
We also test the t value and found that we were 100% sure that the size of house hold can be used to predict credit balance. But just using this data we are not convince there is a correlation between credit balance and size, so we did some predictions to find a better understanding.
By being only 95% We are confident that the size of household will be in average of credit balance will be 0.00105 and 0.001758. Than we wanted to know the average so We are confident that the size of household will be in average of credit balance will be 0.00105 and 0.001758.
Than we did a prediction with a household of 5 and we are sure 95% sure that the household size of 5 will be in average of credit balance of -3.57908 to -0.685750. With our prediction We are 95% sure that the household size of 5, we can expect the credit balance to be between -4.87094 to 0.606111
Than we did a prediction on a household of 10. We can say that we are 95% confident the overall

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