Use regression analysis to answer the following questions. a. Fit a linear trend model to the data
Question:
Use regression analysis to answer the following questions.
a. Fit a linear trend model to the data set. What is the estimated regression function?
b. Interpret the R2 value for your model.
c. Prepare a line graph comparing the linear trend predictions against the original data.
d. What are the forecasts for the next 2 years using this technique?
e. Fit a quadratic trend model to these data. What is the estimated regression function?
f. Compare the adjusted-R2 value for this model to that of the linear trend model. What is implied by this comparison?
g. Prepare a line graph comparing the quadratic trend predictions against the original data.
h. What are the forecasts for the next 2 years using this technique?
i. If you had to choose between the linear and quadratic trend models, which would you use? Why?
Step by Step Answer:
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Business Analytics
ISBN: 1233
8th Edition
Authors: Cliff T. Ragsdale