Forecasting Analysis (15 points) Regression Analysis (12 points) An important re
ID: 3131559 • Letter: F
Question
Forecasting Analysis (15 points) Regression Analysis (12 points) An important regional survey reveals that the economic growth of an HVAC product industry over 11-year period. The industry growth is calculated for eleven years, shown in table below. 2. Product Index, y Year 0 108.91 109.23 109.89 200.02 200.13 200.22 200.35 200.47 200.63 200.88 200.91 201.17 2 10 Hints: Please follow example problem of Regression Analysis'. Determine the values of parameters a and b of the linear regression equation using the method of least squares. i. (2 points) [You may use 'Excel' to find 'a'and 'b'values directly. You may use "Excel' to find 'a a an Go to Excel > Data>Data analysis> Regression. -Explanation / Answer
i) The value of a is 130.0205 and b is 8.67521
ii) The least square regression line is given by Y = 130.0205 + 8.67521*(X)
The expected value when X = 12 is 130.0205+(8.67521*12) = 234.12
iii)
iv) Total e2 = 7948.888
SUMMARY OUTPUT Regression Statistics Multiple R 0.758402823 R Square 0.575174841 Adjusted R Square 0.532692325 Standard Error 28.19377167 Observations 12 ANOVA df SS MS F Significance F Regression 1 10762.07488 10762.07488 13.53909554 0.004249529 Residual 10 7948.88761 794.888761 Total 11 18710.96249 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 130.0205128 15.30980979 8.492627579 6.95062E-06 95.90813082 164.1328948 95.90813082 164.1328948 Year 8.67520979 2.357681629 3.679550997 0.004249529 3.421967752 13.92845183 3.421967752 13.92845183