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Spss Assignment 2

This document contains two SPSS assignment questions. For the first question, the author formulates simple and multiple linear regression models to predict insurance charges using variables like age, BMI, smoking status, and number of children. The second question involves performing a z-test to analyze whether a new environmental campaign had an effect on average air quality index values, based on sample data before and after the campaign. The author determines that the z-test results show the campaign did have a statistically significant effect on AQI levels.

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Muhammad Meesam Temar
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36 views

Spss Assignment 2

This document contains two SPSS assignment questions. For the first question, the author formulates simple and multiple linear regression models to predict insurance charges using variables like age, BMI, smoking status, and number of children. The second question involves performing a z-test to analyze whether a new environmental campaign had an effect on average air quality index values, based on sample data before and after the campaign. The author determines that the z-test results show the campaign did have a statistically significant effect on AQI levels.

Uploaded by

Muhammad Meesam Temar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Muhammad Meesam Temar

24110253

QNQ

SPSS Assignment 2

Question 1 : Formulate a simple and multiple linear regression equations for the given
datasets. (Use any one of the independent variables for simple regression equation)

Dataset#2.csv:

This dataset consists of medical costs billed by health insurance based on several factors of a
beneficiary such as age, bmi (Body Mass Index), number of children, and whether the person
is a smoker or not (1 for yes, 0 for no). Insurance costs act as a dependent variable in this
dataset.

age: age of primary beneficiary

bmi: Body mass index, providing an understanding of body, weights that are relatively high
or low relative to height

children: Number of children covered by health insurance / Number of dependents

smoker: whether the beneficiary smokes or not (1 for yes, 0 for no)

insurance charges: Individual medical costs billed by health insurance

Question 2 (ztest)
Data file = “data for exercise 2”

Answer:

For a simple linear regression model. I have made a model in which my independent variable
is smoking, and the dependent variable is insurance charges. After running the model, we can
see that the R-square value is 0.62 which means that the smoking variables explains our
independent variable by 62% which is a good percentage. Also, the significance level in our
model comes out to be less than 0.05, so we can reject our null hypothesis and say that there
is a relationship between the insurance expenses and smoking. If we look at the regression
equation for this model it is
Insurance Expense = 8343 + 23615 (Smoking) + error
This equation tells us that if we have a patient who is a smoker, it will increase its smoking
charges by 23615.

Now, for a multiple linear regression model, the R-square value is 0.75, the adjusted R-
square value is 0.749, and the significance level is less than 0.05 so we can reject our null
hypothesis. The regression equation is
Insurance Expense = -12102 + 23811(Smoking) + 257.8 (Age) + 321.8 (BMI) + 473.5
(Children) + error.

Research Scenario

In the population, the average AQI is 124.66 with a standard deviation of 29 . the
environment protection company manager wants to run a new environment campaign to see
if it either increase, decrease or doesn’t affect the AQI at all. A sample of 30 sales
observations were taken after running the new marketing campaign that has a mean of
138.75

Research Question

Did the new environment campaign affect the AQI or not?

Answer:

We can use a z-test in this case because the standard deviation of the population is known,
and the sample size is also 30. The z-value comes out to be 2.644 with a significance level
of 0.00818 which is less than 0.05. Thus, we can easily say that the new environmental
campaign has an effect on the AQI. The Cohens_d value is 0.48280 which tells us the effect
size of the new values from the previous values.

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