Coca-Cola Revenues ($ millions), 2005–2010 Quarter 2005 2006 2007 2008 2009 2010 Qtr1 5,206 5,226 6,103 7,379 7,169 7,525 Qtr2 6,310 6,476 7,733 9,046 8,267 8,674 Qtr3 6,037 6,454 7,690 8,393 8,044 8,426 Qtr4 5,551 5,932 7,331 7,126 7,510 10,494
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.
| Coca-Cola Revenues ($ millions), 2005–2010 | ||||||
| Quarter | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Qtr1 | 5,206 | 5,226 | 6,103 | 7,379 | 7,169 | 7,525 |
| Qtr2 | 6,310 | 6,476 | 7,733 | 9,046 | 8,267 | 8,674 |
| Qtr3 | 6,037 | 6,454 | 7,690 | 8,393 | 8,044 | 8,426 |
| Qtr4 | 5,551 | 5,932 | 7,331 | 7,126 | 7,510 | 10,494 |
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(a-1) Use MegaStat or Minitab to deseasonalize Coca-Cola’s quarterly data. (Round your answers to 3 decimal places.)
| 1 | 2 | 3 | 4 | |
| 2005 | ||||
| 2006 | ||||
| 2007 | ||||
| 2008 | ||||
| 2009 | ||||
| 2010 | ||||
| mean | ||||
(a-2) State the adjusted four quarterly indexes. (Round your answers to 3 decimal places.)
| Q1 | Q2 | Q3 | Q4 |
(a-3) What is the trend model for the deseasonalized time series? (Round your answers to 2 decimal places.)
yt = xt +
(b) State the model found when performing a regression using seasonal binaries. (A negative value should be indicated by a minus sign. Round your answers to 4 decimal places.)
yt = + t + Q1 + Q2 + Q3
(c) Use the regression equation to make a prediction for each quarter in 2011. (Enter your answers in millions rounded to 3 decimal places.)
| Quarter | Predicted |
| Q1 | |
| Q2 | |
| Q3 | |
| Q4 | |
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