13.37 Managing your Money A particular savings and loan corporation is interested in determining how well the amount of money in family savings accounts can be predicted using the three independent variables-annual income, number in the family unit, and area in which the family lives. Suppose that there are two specific areas of interest to the corporation. The following data were collected, where Y Amount in all savings accounts x Annual income x2 Number in family unit X3 0 if in Area 1; 1 if not Both Y and x1 were recorded in units of $1000.

The following computer printout resulted when the data were analyzed using MINITAB. 

a. Interpret R and comment on the fit of the model.

b. Test for a significant regression of Y on x1, x2, and x3 at the 5% level of significance.

c. Test the hypothesis Ho: B3 = 0 against Ha: B3 + O using a = 0.05. Comment on the results of your test.

d. What can be said about the utility of x3 as a predictor variable in this problem?

Transcribed Image Text:

y X X2 X3 0.5 19.2 3 0 0.3 23.8 6 0 1.3 28.6 5 0 0.2 15.4 4 0 5.4 30.5 3 1 1.3 20.3 2 1 12.8 34.7 2 1 1.5 25.2 4 1 0.5 18.6 3 1 15.2 45.8 2 1