Obtain 11 years of data from the published financial statements of a company. Using the first 10 years of data, perform a regression analysis in which the dependent variable is cost of goods sold and the independent variable is revenue (some companies call it sales). Now use the results from the regression on the first 10 years of data to estimate the cost of goods sold for the year 11. How far off were you in estimating cost of goods sold for the year 11? Estimate the cost of goods sold for year 5. How far off were you in estimating cost of goods sold for year 5?

Required Prepare a report that describes your work and discusses reasons that your estimate of cost of goods sold is different than the actual cost of goods sold for year 11. You will be able to find the data on the Internet.

Also, Moody’s, Standard & Poor’s and Value-Line are good sources of financial data