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Novine knows that over the last 10 years average computer prices have fallen. She believes that average com- puter prices can be predicted by time,
Novine knows that over the last 10 years average computer prices have fallen. She believes that average com- puter prices can be predicted by time, computing speed (number of instructions processed per second), memory (RAM), storage (hard drive space), and processor chip price. a. Using Excel, develop a linear regression model for the average computer price using the variables above. b. Calculate the MAD for your model. c. Calculate R, F, and t statistics and interpret them. d. What is the best regression model to use to predict average computer price? Is there a problem with using linear regression on this data? Novine knows that over the last 10 years average computer prices have fallen. She believes that average com- puter prices can be predicted by time, computing speed (number of instructions processed per second), memory (RAM), storage (hard drive space), and processor chip price. a. Using Excel, develop a linear regression model for the average computer price using the variables above. b. Calculate the MAD for your model. c. Calculate R, F, and t statistics and interpret them. d. What is the best regression model to use to predict average computer price? Is there a problem with using linear regression on this data
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