3. Use the regression tool in Data Analysis to
develop a regression to test whether there are differences in
Account Balance across city. Use Account Balance as your dependent
variable and create a series of dummy variables to represent the
city variable.
a) How many dummy variables must you create to appropriately
represent the four cities?
b) Are any of your independent variables statistically significant
at the 95% level? At the 90% level?
c) Assume that all of your independent variables are statistically
significant at the 95% level. Predict the average account balance
for each of the four cities.
| Acct. Bal. | # ATM tran. | # services | Debit card? | Interest? | City |
| 1756 | 13 | 4 | 0 | 1 | 2 |
| 748 | 9 | 2 | 1 | 0 | 1 |
| 1501 | 10 | 1 | 0 | 0 | 1 |
| 1831 | 10 | 4 | 0 | 1 | 3 |
| 1622 | 14 | 6 | 0 | 1 | 4 |
| 1886 | 17 | 3 | 0 | 1 | 1 |
| 740 | 6 | 3 | 0 | 0 | 3 |
| 1593 | 10 | 8 | 1 | 0 | 1 |
| 1169 | 6 | 4 | 0 | 0 | 4 |
| 2125 | 18 | 6 | 0 | 0 | 2 |
| 1554 | 12 | 6 | 1 | 0 | 3 |
| 1474 | 12 | 7 | 1 | 0 | 1 |
| 1913 | 6 | 5 | 0 | 0 | 1 |
| 1218 | 10 | 3 | 1 | 0 | 1 |
| 1006 | 12 | 4 | 0 | 0 | 1 |
| 2215 | 20 | 3 | 1 | 0 | 4 |
| 137 | 7 | 2 | 0 | 0 | 3 |
| 167 | 5 | 4 | 0 | 0 | 4 |
| 343 | 7 | 2 | 0 | 0 | 1 |
| 2557 | 20 | 7 | 1 | 0 | 4 |
| 2276 | 15 | 4 | 1 | 0 | 3 |
| 1494 | 11 | 2 | 0 | 1 | 1 |
| 2144 | 17 | 3 | 0 | 0 | 3 |
| 1995 | 10 | 7 | 0 | 0 | 2 |
| 1053 | 8 | 4 | 1 | 0 | 3 |
| 1526 | 8 | 4 | 0 | 1 | 2 |
| 1120 | 8 | 6 | 1 | 0 | 3 |
| 1838 | 7 | 5 | 1 | 1 | 3 |
| 1746 | 11 | 2 | 0 | 0 | 2 |
| 1616 | 10 | 4 | 1 | 1 | 2 |
| 1958 | 6 | 2 | 1 | 0 | 2 |
| 634 | 2 | 7 | 1 | 0 | 4 |
| 580 | 4 | 1 | 0 | 0 | 1 |
| 1320 | 4 | 5 | 1 | 0 | 1 |
| 1675 | 6 | 7 | 1 | 0 | 2 |
| 789 | 8 | 4 | 0 | 0 | 4 |
| 1735 | 12 | 7 | 0 | 1 | 3 |
| 1784 | 11 | 5 | 0 | 0 | 1 |
| 1326 | 16 | 8 | 0 | 0 | 3 |
| 2051 | 14 | 4 | 1 | 0 | 4 |
| 1044 | 7 | 5 | 1 | 0 | 1 |
| 1885 | 10 | 6 | 1 | 1 | 2 |
| 1790 | 11 | 4 | 0 | 1 | 3 |
| 765 | 4 | 3 | 0 | 0 | 4 |
| 1645 | 6 | 9 | 0 | 1 | 4 |
| 32 | 2 | 0 | 0 | 0 | 3 |
| 1266 | 11 | 7 | 0 | 0 | 4 |
| 890 | 7 | 1 | 0 | 1 | 1 |
| 2204 | 14 | 5 | 0 | 0 | 2 |
| 2409 | 16 | 8 | 0 | 0 | 2 |
| 1338 | 14 | 4 | 1 | 0 | 2 |
| 2076 | 12 | 5 | 1 | 0 | 2 |
| 1708 | 13 | 3 | 1 | 0 | 1 |
| 2138 | 18 | 5 | 0 | 1 | 4 |
| 2375 | 12 | 4 | 0 | 0 | 2 |
| 1455 | 9 | 5 | 1 | 1 | 3 |
| 1487 | 8 | 4 | 1 | 0 | 4 |
| 1125 | 6 | 4 | 1 | 0 | 2 |
| 1989 | 12 | 3 | 0 | 1 | 2 |
| 2156 | 14 | 5 | 1 | 0 | 2 |
| Column | Full variable name | ||||
| A | Account balance in $ | ||||
| B | Number of ATM transactions last month | ||||
| C | Number of other bank services used | ||||
| D | Has a debit card (1 = yes, 0 = no) | ||||
| E | Receives interest on the account (1 = yes, 0 = no) |
||||
| F | Where banking is done | ||||
| 1 = Utica | |||||
| 2 = Schenectady | |||||
| 3 = Amsterdam | |||||
| 4 = Rome | |||||
