This problem includes the consumer price index for a Canadian city over a period of 30 months. Also displayed are some of the major components of the index: beef, chicken, eggs, bread, and coffee. Use these data and a stepwise regression procedure to develop a model that attempts to predict the price index by the other five variables. Construct scatter plots of each of these variables with the price index. Examine the graphs in light of Tukey’s four-quadrant approach. Develop any other appropriate predictor variables by recoding data, and include them in the analysis. Comment on the result of this analysis.

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Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Price Index 117.8 118.1 119.4 119.8 120.6 119.8 120 120.3 120.6 120.8 120.9 120.2 120.7 121.2 121.7 122.2 122.1 121.6 121.5 121.8 122 122.2 121.9 121.2 121.3 122.7 122.9 122.7 123 123 Beef 119 119.6 123.6 124.8 126.4 128.1 127.3 127.4 128.2 128 128.4 130.4 133.2 132.8 133.6 132.7 135.5 137.1 136.6 137.2 136.2 135.4 137.3 137.2 136 140.1 138.3 139 139.1 139.5 Chicken 138.5 135.2 134.3 137.1 137 136.8 139.1 139.1 141.2 138.4 139.7 140.3 143.8 142.9 141.8 143.1 146.6 141.3 145.1 145.2 144.5 146.1 143.5 145.3 147.6 144.6 145.9 147 145.4 144 Eggs 127.9 131.5 131.5 134.2 136.3 136.5 140.3 141.6 142.2 142 142.9 145.8 145.5 146.1 147.1 146.1 147.3 147.3 147 150.4 150.4 151.4 155.2 153.7 153.9 153 153.6 153 154.4 154 Bread 163.9 167.6 169.7 173.9 174.7 175.8 174.7 175.9 178.1 181.2 181 179.5 180.2 179.7 180.1 180.9 176.7 177.2 178.5 177.8 178.8 180.9 180.6 181.5 182.2 185.6 186.9 187.8 185.7 184.8 Coffee 127.2 129.5 133.8 134.7 136.7 138.9 141.1 143.2 144.4 143 144.1 141.4 144.2 144.8 144 145.4 142.9 145.5 146.4 143.9 146 143.2 144.7 143.5 144.3 145.1 146.5 143.1 144.6 143