Consider the following time series data. Choose the correct time series plot. (i) (ii) (iii) (iv) What type of pattern exists in the data?
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.
Problem 6-25
Consider the following time series data.
- Choose the correct time series plot.
(i) (ii) (iii) (iv)
What type of pattern exists in the data?
- Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)
Value = fill in the blank 3 + fill in the blank 4 Qtr1 + fill in the blank 5 Qtr2 + fill in the blank 6 Qtr3 + fill in the blank 7 t - Compute the quarterly forecasts for next year. If required, round your answers to two decimal places.
Quarter 1 forecast = fill in the blank 8
Quarter 2 forecast = fill in the blank 9
Quarter 3 forecast = fill in the blank 10
Quarter 4 forecast = fill in the blank 11
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