The following is a spreadsheet for forecasting annual revenues for the Gorsuch Corp.

The data has been correctly entered in Cells C4:C17 and the LINEST output in Cells C21:D25 is correct.

a. Complete the following sentence: The linear model is (or is not) a valid model of the trend of the data because

b. Identify any errors in the models specification.

c. An incorrect entry has been made in one cell and then copied down. You should be able to spot the cell without making any calculations. Identify the cell and indicate the correct entry for it.

1 WIN 4 5 6 7 8 9 10 11 12 13 Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 C D E F G H GORSUCH CORPORATION 80% Confidence Annual Revenues, $thousand X-XM, SFE, Limts, thousand Data Forecast Emor years thousand Minimum Maximum 18.70 14.88 3.82 -7.00 2.89 9.79 19.97 20.57 1834 2.23 6.00 2.83 13.36 23.32 22.63 21.80 0.83 5.00 2.77 16.92 26.68 24.89 25 26 0.37 4.00 2.72 20.46 30.06 27.38 28.72 -1.34 3.00 2.69 23.98 33.45 30.12 32.18 -2.06 -2.00 2.66 27.49 36.87 33.13 35.64 -2.51 -1.00 2.65 30.98 40.30 36.44 39.10 -2.66 0.00 2.64 34.45 43.75 40.09 42.56 -2.47 1.00 2.65 37.90 47.22 44.09 46.02 -1.92 2.00 2.66 41.33 50.70 48.50 49.47 0.97 3.00 2.69 44.74 54.21 53.35 52.93 0.42 4.00 2.72 48.14 57.73 58.69 56.39 2.29 5.00 2.77 51.51 61.27 64.56 59.85 4.70 6.00 2.83 54.88 64.83 63 31 7.00 2.89 58.22 68.40 Average error= 0.00 Student'st= 1.761 UNEST Output Model specificafion: 3.4595 14.880 Y= 14.880 +3.4595*X 0.1691 12936 where Y=annual revenues, in dolars 0.9721 2.5509 and X=number of years since 1985 (i.e., X=0 418.41 12 for 1985, X= 1 for 1986, etc.) 2722.8 78.088 Model's standard error of estimate (SEE IS 2.5509. 14 15 16 17 18 19 20 21 22 23 24 25 1 WIN 4 5 6 7 8 9 10 11 12 13 Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 C D E F G H GORSUCH CORPORATION 80% Confidence Annual Revenues, $thousand X-XM, SFE, Limts, thousand Data Forecast Emor years thousand Minimum Maximum 18.70 14.88 3.82 -7.00 2.89 9.79 19.97 20.57 1834 2.23 6.00 2.83 13.36 23.32 22.63 21.80 0.83 5.00 2.77 16.92 26.68 24.89 25 26 0.37 4.00 2.72 20.46 30.06 27.38 28.72 -1.34 3.00 2.69 23.98 33.45 30.12 32.18 -2.06 -2.00 2.66 27.49 36.87 33.13 35.64 -2.51 -1.00 2.65 30.98 40.30 36.44 39.10 -2.66 0.00 2.64 34.45 43.75 40.09 42.56 -2.47 1.00 2.65 37.90 47.22 44.09 46.02 -1.92 2.00 2.66 41.33 50.70 48.50 49.47 0.97 3.00 2.69 44.74 54.21 53.35 52.93 0.42 4.00 2.72 48.14 57.73 58.69 56.39 2.29 5.00 2.77 51.51 61.27 64.56 59.85 4.70 6.00 2.83 54.88 64.83 63 31 7.00 2.89 58.22 68.40 Average error= 0.00 Student'st= 1.761 UNEST Output Model specificafion: 3.4595 14.880 Y= 14.880 +3.4595*X 0.1691 12936 where Y=annual revenues, in dolars 0.9721 2.5509 and X=number of years since 1985 (i.e., X=0 418.41 12 for 1985, X= 1 for 1986, etc.) 2722.8 78.088 Model's standard error of estimate (SEE IS 2.5509. 14 15 16 17 18 19 20 21 22 23 24 25