Streaming Services Cost	Head of Household Age	Monthly Family Income	Family Size
75	42	2900	4
129	36	2500	2
105	38	2500	2
42	54	1700	3
17	49	1500	5
26	55	1950	3
144	25	2400	2
100	24	1400	1
32	30	1100	1

58	35	1200	2
111	27	2900	3
146	29	3800	2
93	38	1950	4
68	40	2400	3
11	36	2250	2
50	22	1020	1
55	25	1400	3
88	69	1920	4
160	54	5200	4

86	48	2140	3
105	30	2600	2
121	27	1825	3
14	62	1025	3
37	50	1810	2
43	26	2450	4

Part 1

A random sample of 25 customers of streaming services was surveyed and asked how much they spend on streaming services monthly. Other information gathered is the customer age, monthly household income, and family size. Your job is to do analysis to find the best way to estimate the amount spent on streaming services based on the data you have. Here are your instructions to guide your work:

1. Create correlation matrix of all the variables from the file. Be sure to include this in your report.
2. Which variable has the strongest linear correlation with the amount spent on streaming services? Explain this in your report.
3. Create simple linear regression equation of the amount spent and your chosen variable from the previous step. Include Excel's Analysis Toolpac Regression output in your report.
4. Using the Excel output, report the linear regression equation.
5. Interpret the slope of the model using appropriate units of measure. For example, the amount spent is in dollars per month.
6. Test the slope of the model. See "Test the Slope for Significance" on the M07 Excel Help page if you need help.
7. Report the 95% confidence interval estimate of the slope and explain what it represents. The M07 Excel Help page can assist you.
8. Find the Coefficient of Determination, R², for your regression model and interpret the meaning.

Part 2

Management wants to use your model for estimative and predictive purposes.

1. Estimate and explain the average amount spent on streaming services for customers that are 40 years old, have a household income of $2200, and have a family size of 3. NOTE for the future: There is a calculator for the confidence and prediction intervals and tutorials found on the M07 Excel Help page.
2. Calculate a 95% confidence interval estimate of the average amount spent on streaming services based on the same customer profile. Interpret your confidence interval.
3. Calculate a 95% prediction interval estimate of the average amount spent on streaming services.

Part 3

Consider whether you can find a better regression model based on your data. How about a multiple regression model which predicts the average amount spent on streaming services using all the data?

1. Use Excel's Analysis Toolpak to create multiple regression model output. Be sure to include that output in your report.
2. State the multiple regression model clearly by using the names of your variables in your equation.
3. Test each of the "slopes" using the t-test. List these and write conclusion for each.
4. Test the overall module using the F-Test statistic and related p-value. What is your conclusion from this test?
5. Report the Multiple Coefficient of Determination, R², and interpret the meaning.
6. Use this model to estimate the average amount spent on streaming services for people who are
   • 50 years of age,
   • with a household income of $3000, and
   • with a family size of 4.
7. Decide which model is best, the simple linear from Part 1 or the multiple regression from Part 3. Justify your choice.