Scribd
Upload
112 views4 pages

Customer Shopping Trends Dataset: Analysis of Data - Regression Model

Uploaded by

adatiyatejas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
112 views4 pages

Customer Shopping Trends Dataset: Analysis of Data - Regression Model

Uploaded by

adatiyatejas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

ASSIGNMENT 1.

3
Subject: ECON 2330
Instructor: Dr. Subrahmanya Karkada
Student Name: Tejas Adatiya
Student ID: T00720280

Customer Shopping Trends Dataset


Analysis of Data – Regression Model
Given,
Dependent (Response) Variable: Previous Purchase
Independent (Explanatory)Variable: Age, Purchase Amount (USD), Size, Review Rating
Test,
 Fit linear regression between y1 and X.
 Write the estimated regression equation and interpret the results.
 Use the estimated regression equation to develop a confidence interval estimate for the
previous purchase at [Age=22, Purchase Amount =50, Size=M, Review Rating=3]
Solution,
Recoded
Variable
1. Regression Line:

Regression Line: Ŷ = (Intercept) 22.262578 + (Age) 0.038599 +


(Purchase.Amount..USD) 0.005346 + (Review.Rating) 0.094756 + (Size_recode)
0.307401

2. Multicollinearity -

All the VIFs are less than 5, so there are no Multicollinearity issues.

3. Regression Assumptions: Comment on the Graphs (b, a, and c)


a. Normality of residuals: Good

b. Linearity of variables: Excellent


c. Homogeneity of variance of residuals: Good

4. R-Square-Coefficient of determination
Regression Statistics
Multiple R-squared 0.002083
Adjusted R-squared 0.001059
Residual Standard Error & df 14.44, 3895

5. Overall Model significance ANOVA

ANOVA TABLE
F-statistic Degrees of Freedom P-value Significant or not
2.033 4 3895 0.0871 Not Significant
6. Significance of Predictors (Independent factors)

Regression Coefficients
Predictors Coefficients Std Error t -Stat P-value Significant Lower 95% Upper 95%
Intercept 22.262578 1.638316 13.589 2e-16 < 0.05 Yes 19.05053946 25.47461701
Age 0.038599 0.015210 2.538 0.0112 < 0.05 Yes 0.008777735 0.06841983
Purchase.Amount. 0.005346 0.009771 0.547 0.5843 > 0.05 No -0.01381095 0.02450202
.USD
Review.Rating 0.094756 0.323111 0.293 0.7693 > 0.05 No -0.53872654 0.72823784
Size_recode 0.307401 0.262282 1.172 0.2413 > 0.05 No -0.20682119 0.82162316

7. General Conclusion:
Overall, this linear regression model is a poor fit for the data with non-statistically
significant ANOVA. The value of the coefficient of determination is poor. The
purchase amount, review rating, and size are positively related to previous purchase.

8. Prediction of the response variable:


The previous purchase will be 24.2781, and the 95% confidence interval is [23.31024 –
25.24596] under the given values of the predictors. [Age=22, Purchase
Amount =50, Size=M, Review
Rating=3]

Prediction of Response Variable and Confidence Interval


FIT single value Lower 95% CI Upper 95% CI
24.2781 23.31024 25.24596

You might also like