Income ($1000s) Income ($1000s) Income ($1000s) 54 3 4,016 30 2 3,159 32 4 5,100 50 5 4,742 31 2 1,864 55 2 4,070 37 1 2,731 40 2 3,348 66 4 4,764 51...

1. Develop estimated regression equations, first using annual income as the independent variable and then using household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss the findings.2. Develop an estimated regression equation with annual income and household size as the independent variables. Discuss your findings.3. What is the predicted annual credit card charge for a three-person household with an annual income of $40,000?

4. Discuss the need for other independent variables that could be added to the model.

5. Use methods of descriptive statistics to summarize the data. Your answer should include the followings: