Consider the following time series. t 1 2 3 4 5 6 7 Tt 120 110 100 96 94 92 88 Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. Do not round your interim computations and round your final answers to three decimal places. For subtractive or negative numbers use a minus sign. (Example: -300) y-intercept, b0= Slope, b1 = MSE = What is the forecast for t= 8? If required, round your answer to three decimal places.
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.
Consider the following time series.
t 1 2 3 4 5 6 7
Tt 120 110 100 96 94 92 88
- Use simple linear
regression analysis to find the parameters for the line that minimizes MSE for this time series. Do not round your interim computations and round your final answers to three decimal places. For subtractive or negative numbers use a minus sign. (Example: -300)
y-intercept, b0=
Slope, b1 =
MSE = - What is the forecast for t= 8? If required, round your answer to three decimal places.
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