Consumer Research, Inc. is an independent agency that conducts research on consumer attitudes and behaviors for a variety of firms. In one study, a client asked for an investigation of consumer characteristics that can be used to predict the amount charged by credit card users. Data were collected on annual income, household size, and annual credit card charges for a sample of 50 customers.

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 independent variable, and then using the household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss your findings.

"Income ($1000s)" "Household " Amount Size "Charged ($)"
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 3 4,110
25 3 4,208
48 4 4,219
27 1 2,477
33 2 2,514
65 3 4,214
63 4 4,965
42 6 4,412
21 2 2,448
44 1 2,995
37 5 4,171
62 6 5,678
21 3 3,623
55 7 5,301