The file P11_44.xlsx contains quarterly data on pork sales. Price is in dollars per hundred pounds, quantity sold is in billions of pounds, per capita income is in dollars, U.S. population is in millions, and GDP is in billions of dollars.
a. Use the data to develop a regression equation that could be used to predict the quantity of pork sold during future periods. Discuss how you can tell whether heteroscedasticity, autocorrelation, or multicollinearity might be a problem.
b. Suppose that during each of the next two quarters, price is 45, U.S. population is 240, GDP is 2620, and per capita income is 10,000. Predict the quantity of pork sold during each of the next two quarters.