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The data attached contains information on customers’ ratings of your product (CustRate), on a scale of 1 to 100, along with demographic information. The demographic information includes: income (Inc), age (Age), education (Educ), and marital status (Marr). The last variable equals one if the respondent is married and zero otherwise. Assume the data-generating process can be written as:
CustRatei=α+β1Inci+β2Agei+β3Educi+β4Marri+Ui.
Test the hypothesis that income has no impact on customer rating, using a confidence level of 95%. Be sure to provide the reasoning behind your result.
Test the hypothesis that β2=0.05, using a confidence level of 90%. Be sure to provide the reasoning behind your result.
Build a 95% confidence interval for the impact of education on customer rating. Be sure to provide the reasoning for your result.
Build a 95% confidence interval for the impact of being married on customer rating. Be sure to provide the reasoning for your result.
Predict the change in customer rating if a customer’s income increases by $10,000, with no change in age, education, or marital status.
