The accompanying data file contains 40 observations on the response variable along with the predictor variables 1 and 2. Use the

holdout method to compare the predictability of the linear model with the exponential model using the first 30 observations for training

and the remaining 10 observations for validation.

Ficture Click here for the Excel Data File

a-1. Use the training set to estimate Models 1 and 2.(Negative values should be indicated by a minus sign. Round your answers to

4 decimal places.)

Predictor Variable Model 1(linear) Model 2(exponential)

Constant _______ __________

x1 _______ _________

x2 _______ _________

a-2. Calculate the RMSE of the two models in the validation set. (Do not round intermediate calculations and round final answers to

2 decimal places.)

Model 1 (linear) Model 2 (exponential)

RMSE _______ _______

a-3. Which model is better for making predictions?

y x1 x2

533.862030

104.841520

64.892023

159.611621

43.061316

4.271313

736.561530

64.892023

10.642022

76.901820

10.001113

80.901116

224.171219

45.751625

8.131717

319.971330

48.611925

564.671227

111.871125

152.391324

10.001814

28.801522

37.561315

105.621726

44.051821

451.651728

10.341821

32.701213

19.211412

14.021516

2.451612

2.482015

50.341721

29.311720

33.751612

196.281729

943.121330

7.251012

89.731525

32.911218