Weighted Moving Average with weights 2, 2, 1

Week

Actual

3-week weighted moving average (2-2-1)

Error

|Error|

1

17

2

21

3

19

4

23

5

18

6

16

7

20

8

18

MAD

1.Bob White is conducting research on monthly expenses for medical care, including over-the-counter medicine. His dependent variable is monthly expenses for medical care while his independent variable is number of family members. Below is his Excel output.(10 points)

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.695

R Square

Missing

Adjusted R Square

0.474

Standard Error

55.278

Observations

21

ANOVA

df

SS

MS

F

Significance F

Regression

1

99929.47

32.70311

0.00016

Residual

19

58057.48

3055.657

Total

20

157987

Coefficients

Standard Error

t Stat

P-Value

Intercept

110.47

35.53407

3.109087

0.0057

X

16.83

0.819024

5.718663

0.00016

a)What is the estimated relationship? (2 points)

b)What is the value of the correlation coefficient? (2 points)

c)Based on the significanceF-test, is this model a good prediction equation? (2 points)

d)The R Square value is Missing. What is the actual value? (2 points)

e)The R Square value is Missing. What is the actual value? (2 points)

f)How many observations are there in the model? (2 points)

2.An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch. Data is provided below:

Use Excel to run regression analysis and develop a relationship between Sales, Price, and Advertising(5 points)

Sales (units)

Price ($)

Advertising ($)

500

100

50

480

120

40

485

110

45

510

103

55

490

108

40

488

109

30

496

106

45