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(b) Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. If required, round your answers
(b) | Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. |
If required, round your answers to two decimal places. | |
y-intercept,b0= | |
Slope,b1= | |
MSE = |
Question:
Problem 5-21
The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per unit for the firm's leading product over the past eight years.
NEED MSE!!!!!
Year | Cost/Unit ($) | Year | Cost/Unit ($) |
1 | 20.00 | 5 | 26.60 |
2 | 24.50 | 6 | 30.00 |
3 | 28.20 | 7 | 31.00 |
4 | 27.50 | 8 | 36.00 |
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