2. Following are data on the worldwide shipments of personal computers (in thousands) according to Dataquest. (a) Fit a linear model (T = bo + bịt) to this data using linear regression. Write the equation for the model, calculate the fitted values and the residuals. Calculate MSE and MAD for this model. (b) Repeat the procedures in (a), but for the quadratic model (T; = bo + bịt+ bat?), using the quadratic regression option in your calculator. (c) Compare MSE for both models and MAD for both models to decide which model fits better. Do not look at R? calculations or other traditional regression diagnostic tools (they are not appropriate for time series - the observations are not independent).

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Equations and Inequations

Equations and inequalities describe the relationship between two mathematical expressions.

Linear Functions

A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.