A construction company renovates old homes at Garden East in Karachi. Over the time, the company has found that its rupee volume of renovation work is dependent on the area’s payroll. The figures for the company’s revenues and the amount of money earned by wage earners in the area for the past six years are presented in Table 3. If the payroll for next year is expected to be PKR 600 thousand, then what is the predicted value for the company’s sales (include error of prediction in your answer)? Do this for all prediction models. Local Payroll(PKR 100,000/=)Company’s sales(PKR 100,000/=)3648694524.559.5 ii) If in part a (above), if we add another input variable along with Local Payroll, then we will obtain a multiple regression model for predicting Company’s sales. How should the correlation between the input variables vary?

Given: Sample size n = 6 Formula Used: Y = a + bX Where a is intercept b is slope b =…

Answered: A construction company renovates old…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A construction company renovates old homes at Garden East in Karachi. Over the time, the company has found that its rupee volume of renovation work is dependent on the area’s payroll. The figures for the company’s revenues and the amount of money earned by wage earners in the area for the past six years are presented in Table 3. If the payroll for next year is expected to be PKR 600 thousand, then what is the predicted value for the company’s sales (include error of prediction in your answer)? Do this for all prediction models.

Local Payroll (PKR 100,000/=)	Company’s sales (PKR 100,000/=)
3	6
4	8
6	9
4	5
2	4.5
5	9.5

ii) If in part a (above), if we add another input variable along with Local Payroll, then we will obtain a multiple regression model for predicting Company’s sales. How should the correlation between the input variables vary?

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