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PROBLEM 1: Analyze the following data using LINEAR TREND ANALYSIS. How many cars will be sold in time period 13? TIME PERIOD NUMBER OF CARS

PROBLEM 1: Analyze the following data using LINEAR TREND ANALYSIS. How many cars will be sold in time period 13?

TIME PERIOD

NUMBER OF CARS SOLD

1

70

2

80

3

66

4

74

5

64

6

76

7

72

8

83

9

82

10

76

11

84

12

80

PROBLEM 2: A sample of 20 cars was taken, and the miles per gallon (MPG), horsepower, and total weight were recorded.

Develop a simple regression model to predict the dependent variable, MPG, using horsepower as the independent variable.

Develop a simple regression model to predict the dependent variable, MPG, using weight as the independent variable.

Using R, which of the 2 causal forecasting models, A or B, is better?

Develop a multiple regression model to predict the dependent variable, MPG, using horsepower and weight as the 2 independent variables.

Using R, how does the multiple regression model compare with each of the 2 simple regression models?

MPG (Y)

HORSEPOWER (X1)

WEIGHT (X2)

44

67

1844

44

50

1998

40

62

1752

37

69

1980

37

66

1797

34

63

2199

35

90

2404

32

99

2611

30

63

3236

28

91

2606

26

94

2580

26

88

2507

25

124

2922

22

97

2434

20

114

3248

21

102

2812

18

114

3382

18

142

3197

16

153

4380

16

139

4036

give answer to the problem 1 and 2 in excel.

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