Canada's trade balance with the rest of the world has been steadily increasing over the past several years. It is well known that the U.S. is Canada's leading trade partner. Is there a predictable linear relationship between our total trade balance and our trade balance with the U.S.? Develop a regression model to predict the trade balance with the U.S. by our trade balance with the rest of the world. Comment on the strength of the model. Develop a time-series trend line for trade balance with the rest of the world by using the time periods given. Forecast total trade balance with the rest of the world for 2020 using this equation. Trade Balance ($ millions) Year Rest of the World U.S. 2010 2,290 4,991 2011 2,486 4,709 2012 2,776 4,641 2013 2,648 5,220 2014 3,068 5,041 2015 3,688 4,750 2016 4,111 4,321 2017 4,172 4,699 2018 3,669 4,777 2019 3,493 4,809 1. y̅= ? +?x 2. r2 for this model is ?. There is (more, less or no predictability? )in this model. 3. Test for slope: t = ? with a p-value of ?. The null hypothesis that the population slope is zero is (rejected or not rejected ? ) 4. y̅= ? +?x 5. y̅(2020)= ?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Canada's trade balance with the rest of the world has been steadily increasing over the past several years. It is well known that the U.S. is Canada's leading trade partner. Is there a predictable linear relationship between our total trade balance and our trade balance with the U.S.? Develop a regression model to predict the trade balance with the U.S. by our trade balance with the rest of the world. Comment on the strength of the model. Develop a time-series trend line for trade balance with the rest of the world by using the time periods given. Forecast total trade balance with the rest of the world for 2020 using this equation.
|
|
Trade Balance ($ millions) |
|
|
Year |
Rest of the World |
U.S. |
|
2010 |
2,290 |
4,991 |
|
2011 |
2,486 |
4,709 |
|
2012 |
2,776 |
4,641 |
|
2013 |
2,648 |
5,220 |
|
2014 |
3,068 |
5,041 |
|
2015 |
3,688 |
4,750 |
|
2016 |
4,111 |
4,321 |
|
2017 |
4,172 |
4,699 |
|
2018 |
3,669 |
4,777 |
|
2019 |
3,493 |
4,809 |
1. y̅= ? +?x
2. r2 for this model is ?. There is (more, less or no predictability? )in this model.
3. Test for slope: t = ? with a p-value of ?. The null hypothesis that the population slope is zero is (rejected or not rejected ? )
4. y̅= ? +?x
5. y̅(2020)= ?
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