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COMPUTER SESSION XXXXXXXXXXECON 309 COMPUTER SESSION XXXXXXXXXXECON 3060 A bank would like to develop a model to predict the total sum of money customers withdraw from automatic teller machines (ATMs)...

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COMPUTER SESSION XXXXXXXXXXECON 309
COMPUTER SESSION XXXXXXXXXXECON 3060
A bank would like to develop a model to predict the total sum of money customers withdraw from automatic teller machines (ATMs) on a weekend based on the following model:
i
i
i
i
x
x
Y
e
+
+
+
=
2
2
1
1
0
where
i
Y
= Withdrawal amount ($000)
i
x
1
= Median assessed value of houses in the vicinity of the ATM ($000)
i
x
2
= 1 if the ATM is located in a shopping cente
XXXXXXXXXXotherwise
A random sample of 15 ATMs is selected with the following results.
XXXXXXXXXXMedian
XXXXXXXXXXWithdrawal XXXXXXXXXXAssessed Value
ATM# XXXXXXXXXXAmount($ XXXXXXXXXXof Houses ($ XXXXXXXXXXLocation of ATM
1 XXXXXXXXXX12.0 XXXXXXXXXX225 XXXXXXXXXX1
2 XXXXXXXXXX9.9 XXXXXXXXXX170 XXXXXXXXXX0
3 XXXXXXXXXX9.1 XXXXXXXXXX153 XXXXXXXXXX1
4 XXXXXXXXXX8.2 XXXXXXXXXX132 XXXXXXXXXX0
5 XXXXXXXXXX12.4 XXXXXXXXXX237 XXXXXXXXXX1
6 XXXXXXXXXX10.4 XXXXXXXXXX187 XXXXXXXXXX1
7 XXXXXXXXXX12.7 XXXXXXXXXX245 XXXXXXXXXX1
8 XXXXXXXXXX8.0 XXXXXXXXXX125 XXXXXXXXXX1
9 XXXXXXXXXX11.5 XXXXXXXXXX215 XXXXXXXXXX1
10 XXXXXXXXXX9.7 XXXXXXXXXX170 XXXXXXXXXX0
11 XXXXXXXXXX11.7 XXXXXXXXXX223 XXXXXXXXXX0
12 XXXXXXXXXX8.6 XXXXXXXXXX147 XXXXXXXXXX0
13 XXXXXXXXXX10.9 XXXXXXXXXX197 XXXXXXXXXX1
14 XXXXXXXXXX9.4
Answered Same Day Dec 11, 2021

Solution

Mohd answered on Dec 11 2021
154 Votes
Model Equation:
Withdrawal amount= 0.039312(median assessed value of houses) - 0.122821(Location of ATM)- 2.968232.
    Regression Statistics
    Multiple R
    0.998178606
    R Square
    0.99636053
    Adjusted R Square
    0.995753951
    Standard E
o
    0.099897087
    Observations
    15
Goodness of fit (r -squared):
As we can see from summary output, the regression statistics table coefficient of determination adjusted R-square value is 0.99575. It means we can explain 99.575 percent of variability in response variable. Standard e
or is 0.099897,...
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