1. Estimate a multiple regression model to predict average number of transactions per month using all the following independent variables:

 Age

 Gender

 Household Income ($)

 Have Children?

2. Check for multicollinearity and other necessary conditions for statistical inferences. Do you see any strong violation of necessary conditions? If yes, which condition is not satisfied?

3. Eliminate non-significant variables from your model (????=0.05) and re-run your model only with the significant variables.

4. What will be your best estimation of number of transactions for a new female customer who is 32 years old, with no children, and an annual income of 56K.

5- Do you recommend a nonlinear regression? Explain.