Ca e Problem 1 Consumer Research, Inc. Consumer Research, Inc., is an independent agency that conducts attitudes and behaviors for a variety of firms. In one study, a client asked for an int tigation of consumer characteristics that can be used to predict the amount charged credit card users. Data were collected on annual income, household size, and a credit card charges for a sample of 50 consumers. The following data are contained a research on co the file named Consumer. Income Household Amount ($1000s) SizeCharged () Income Household Amount (51000s) Size Charged (s 4016 4742 1864 2731 4110 4208 4219 2477 DATA 4157 4214 4412 4171 5678 5301 4828 D. 3067 41 5149 Managerial Report 1. Use methods of descriptive statistics to summarize the data. Comment on the findings 2. Develop estimated regression equations, first using annual income as the indepeno- ent variable and then using household size as the independent varia able is the better predictor of annual credit card charges? Discuss your findings. as the independent variables. Discuss your findings. an annual income of $40,000? What additional variables might be helpful? an estimated regression equation with annual income and 3. Develop 4. What is the predicted annual credit card charge for a three-person household wi 5. Discuss the need for other independent variables that could be added to the household size 10. (a) Explain the purpose of the two accounts: Depre- . (b) ciation Expense and Accumulated Depreciation What is the normal balance of each account? (c) Is it customary for the balances of the two accounts to be equal in amount? (d) In what financial state- ments, if any, will each account appear