Consider the following time series: t sales 1 6. 2 10 8. 4 12 5 16 Use simple linear regression analysis with t as the predictor variable to find the parameters for the line that minimizes MSE for this time series. Enter the data into Excel and use Excel for your calculations. Enter the exact answers. a) y-intercept, bo = %3D b) slope, b1 = What is the MSE if this model is used to forecast sales for time periods 1-5? c) MSE = What is the forecast for time period t = 6?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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![### Consider the Following Time Series:
| t | sales |
|----|-------|
| 1 | 6 |
| 2 | 10 |
| 3 | 8 |
| 4 | 12 |
| 5 | 16 |
Use simple linear regression analysis with \( t \) as the predictor variable to find the parameters for the line that minimizes MSE for this time series.
Enter the data into Excel and use Excel for your calculations. Enter the exact answers.
a) \( y \)-intercept, \( b_0 = \) [Input Box]
b) slope, \( b_1 = \) [Input Box]
What is the MSE if this model is used to forecast sales for time periods 1-5?
c) MSE = [Input Box]
What is the forecast for time period \( t = 6 \)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6835fe2b-4dfe-4db0-80f6-f1ad78fce3f2%2Ff5f9d2ad-af79-4548-a356-763df4e7fdeb%2Fs2l3ag_processed.jpeg&w=3840&q=75)
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