Home Depot sales. The home retail industry has experienced relatively consistent annual growth over the past few decades. Here is a scatterplot of the Net Sales ($B) of The Home Depot from 1995 through 2004, along with a regression and a time series plot of the residuals.

a) What does the value in the regression mean?

b) What features of the residuals should be noted with regards to this regression?

c) What features of the residuals might be dealt with by a re-expression? Which ones would not be helped by a re-expression?

d) Can you use the regression model to help in your understanding of the growth of this market?

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20+ 16- 12 8+ HD Sales ($B) 4- 1995.0 1997.5 2000.0 2002.5 Date Dependent variable is: HDSales R-squared 95.5% s1.044 s = 1.044 with 40 238 degrees of freedom Variable Coeff SE(Coeff) t-ratio P-value Constant -3234.87 114.4 -28.3 <0.0001 Date 1.62283 0.0572 28.4 0.0001