Question
Fifteen midwestern and mountain states have united in an effort to promote and forecast tourism. One aspect of their work has been related to the
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Fifteen midwestern and mountain states have united in an effort to promote and forecast tourism. One aspect of their work has been related to the dollar amount spent per year on domestic travel (DTE) in each state. They have the following estimates for disposable personal income per capita (DPI) and DTE:
(c4p14) State DPI DTE ($ Millions) Minnesota $ 17,907 $ 4,933 Iowa 15,782 1,766 Missouri 17,158 4,692 North Dakota 15,688 628 South Dakota 15,981 551 Nebraska 17,416 1,250 Kansas 17,635 1,729 Montana 15,128 725 Idaho 15,974 934 Wyoming 17,504 778 Colorado 18,628 4,628 New Mexico 14,587 1,724 Arizona 15,921 3,836 Utah 14,066 1,757 Nevada 19,781 6,455 -
From these data, estimate a bivariate linear regression equation for domestic travel expenditures (DTE) as a function of disposable income per capita (DPI):
DTE = a + b(DPI)
DTE = ________ +/ ________(DPI)
(Circle + or as appropriate)
Evaluate the statistical significance of this model.
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Illinois, a bordering state, has asked that this model be used to forecast DTE for Illinois under the assumption that DPI will be $19,648.
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Given that actual DTE turned out to be $7,754 (million), calculate the percentage error in your forecast.
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Please post steps using Excel or Forecast X so I can figure out what I doing wrong
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