Student’s name: Vuong Minh Khue
Student’s code: 31231026928
9. Using the Excel file Weddings, apply the Excel Regression tool using the wedding cost as the
dependent variable and attendance , income, age, value rating as the independent variable.
a. Interpret all key regression results, hypothesis tests, and confidence intervals in the output.
R = 0.864 : indicates a strong positive correlation between the independent variables (attendance,
income, age, value rating) and the dependent variable (wedding cost).
R Square = 0.747 : Approximately 74.7% of the variance in wedding costs can be explained by the
four independent variables. This high proportion indicates that the model explains a significant
amount of variation in wedding costs.
Adjusted R Square = 0.696 : it is close to R Square indicates that the inclusion of these independent
variables is justified.
Attendance (B = 46.719) : For each additional guest attending the wedding, the wedding cost is
expected to increase by approximately $46.72.
Bride's Age (B = -399.720) : For each additional year in the bride's age, the wedding cost is expected
to decrease by approximately $399.72, indicating a potential negative correlation.
Value Rating (B = 837.652) : An increase in the value rating by 1 unit is associated with a $837.65
increase in wedding cost.
Couple's Income (B = 0.325) : For every additional dollar in a couple's income, the wedding cost is
expected to increase by approximately $0.33. This indicates a relatively small increase in wedding
costs with higher income.
b. Analyze the residuals to determine if the assumptions underlying the regression analysis are
valid.
The Normal P-P Plot for the standardized residuals of the regression model indicates that the residuals
are normally distributed, as the points align closely with the diagonal line
c. Use the standard residuals to determine if any possible outliers exist.
To identify possible outliers, I examined the standardized residuals from the regression analysis.
Observations with standardized residuals exceeding ±3 are categorized as potential outliers. If any
standardized residuals fall outside this range, they indicate the presence of outliers. Based on my
analysis, further investigation of these cases is recommended to assess their impact on the regression
results.
d. If a couple is planning a wedding for 175 guests, age 28, rating 3, income 60.000$, how much
should they budget?
Wedding cost = 910 +48xAttendance -400xBridge’s age +838xValue Rating + 0,325
For a couple planning a wedding for:
Attendance = 175 guests
Bride's Age = 28
Value Rating = 3
Couple's Income = $60,000
Therefore,
WeddingCost=910+(48×175)+(−400×28)+(838×3)+(0.325×60000)= 20 124
⇒ The couple should budget approximately $20 124 for their wedding
