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Simple and Multiple Regression, Evaluating Reliability of an Equation The Lockit Company manufactures door knobs for residential homes and apartments. Lockit is considering the use of simple (single-driver) and multiple regression analyses to forecast annual sales because previous forecasts have been inaccurate. The new sales forecast will be used to initiate the budgeting process and to identify more completely the underlying process that generates sales. Larry Abram, the controller of Lockit, has considered many possible independent variables and equations to predict sales and has narrowed his choices to four equations. Abram used annual obser 20 prior years to estimate each of the four equations. observations from Following are definitions of the variables used in the four equations and a statistical summary of these equations: Statistical Summary of Four Equations Independent Equation 1 2 3 Dependent Variable S 55 55 55 St S Independent Variable (s) Intercept $500,000 1,000,000 900,000 600,000 Gr Variable (Rate) $1.10 0.00001 0.000012 Standard Error R Square 0.94 0.90 0.81 0.96 $500,000 510,000 520,000 490,000 10.00 0.000002 0.000003 S-Forecasted sales in dollars for Lockit in period S--Actual sales in dollars for Lockit in period t-1 G-Forecasted U.S. gross domestic product in period t Ge-1-Actual U.S. gross domestic product in period t-1 Ne-1-Lockit's net income in period t-1 Required: 1. Write Equations 2 and 4 in the form Ya+bx. If required, round your answers to six decimal places. Equation 2: S-S G Equation 4: S-s 2. If actual sales are $1,500,000 in the current year, what would be the forecasted sales for Lockit in the coming year? G₁-1 t-Value 5.50 10.00 5.00 4.00 1.50 3.00

Simple and Multiple Regression, Evaluating Reliability of an Equation The Lockit Company manufactures door knobs for residential homes and apartments. Lockit is considering the use of simple (single-driver) and multiple regression analyses to forecast annual sales because previous forecasts have been inaccurate. The new sales forecast will be used to initiate the budgeting process and to identify more completely the underlying process that generates sales. Larry Abram, the controller of Lockit, has considered many possible independent variables and equations to predict sales and has narrowed his choices to four equations. Abram used annual obser 20 prior years to estimate each of the four equations. observations from Following are definitions of the variables used in the four equations and a statistical summary of these equations: Statistical Summary of Four Equations Independent Equation 1 2 3 Dependent Variable S 55 55 55 St S Independent Variable (s) Intercept $500,000 1,000,000 900,000 600,000 Gr Variable (Rate) $1.10 0.00001 0.000012 Standard Error R Square 0.94 0.90 0.81 0.96 $500,000 510,000 520,000 490,000 10.00 0.000002 0.000003 S-Forecasted sales in dollars for Lockit in period S--Actual sales in dollars for Lockit in period t-1 G-Forecasted U.S. gross domestic product in period t Ge-1-Actual U.S. gross domestic product in period t-1 Ne-1-Lockit's net income in period t-1 Required: 1. Write Equations 2 and 4 in the form Ya+bx. If required, round your answers to six decimal places. Equation 2: S-S G Equation 4: S-s 2. If actual sales are $1,500,000 in the current year, what would be the forecasted sales for Lockit in the coming year? G₁-1 t-Value 5.50 10.00 5.00 4.00 1.50 3.00

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Simple and Multiple Regression, Evaluating Reliability of an Equation The Lockit Company manufactures door knobs for residential homes and apartments. Lockit is considering the use of simple (single-driver) and multiple regression analyses to forecast annual sales because previous forecasts have been inaccurate. The new sales forecast will be used to initiate the budgeting process and to identify more completely the underlying process that generates sales. Larry Abram, the controller of Lockit, has considered many possible independent variables and equations to predict sales and has narrowed his choices to four equations. Abram used annual observations from 20 prior years to estimate each of the four equations. Following are definitions of the variables used in the four equations and a statistical summary of these equations: Statistical Summary of Four Equations Independent Equation 1 3 4 Dependent Variable St St 5₁ S Independent Variable (s) 54-1 Ge N-1 Gr G₂-1 Intercept $500,000 1,000,000 900,000 600,000 Variable (Rate) $1.10 0.00001 0.000012 Standard Error $500,000 510,000 520,000 490,000 10.00 0.000002 0.000003 5- Forecasted sales in dollars for Lockit in period t Se-Actual sales in dollars for Lockit in period -1 G-Forecasted U.S. gross domestic product in period t Ge-1 - Actual U.S. gross domestic product in period t-1 Ne-1-Lockit's net income in period t-1 Required: 1. Write Equations 2 and 4 in the form Ya+bx. If required, round your answers to six decimal places. Equation 2: 5,- G N₂-1+ G₂₁ + $[ G₁-1 Equation 4: S 2. If actual sales are $1,500,000 in the current year, what would be the forecasted sales for Lockit in the coming year? R Square 0.94 0.90 0.81 0.96 t-Value 5.50 10.00 5.00 4.00 1.50 3.00
Transcribed Image Text:Simple and Multiple Regression, Evaluating Reliability of an Equation The Lockit Company manufactures door knobs for residential homes and apartments. Lockit is considering the use of simple (single-driver) and multiple regression analyses to forecast annual sales because previous forecasts have been inaccurate. The new sales forecast will be used to initiate the budgeting process and to identify more completely the underlying process that generates sales. Larry Abram, the controller of Lockit, has considered many possible independent variables and equations to predict sales and has narrowed his choices to four equations. Abram used annual observations from 20 prior years to estimate each of the four equations. Following are definitions of the variables used in the four equations and a statistical summary of these equations: Statistical Summary of Four Equations Independent Equation 1 3 4 Dependent Variable St St 5₁ S Independent Variable (s) 54-1 Ge N-1 Gr G₂-1 Intercept $500,000 1,000,000 900,000 600,000 Variable (Rate) $1.10 0.00001 0.000012 Standard Error $500,000 510,000 520,000 490,000 10.00 0.000002 0.000003 5- Forecasted sales in dollars for Lockit in period t Se-Actual sales in dollars for Lockit in period -1 G-Forecasted U.S. gross domestic product in period t Ge-1 - Actual U.S. gross domestic product in period t-1 Ne-1-Lockit's net income in period t-1 Required: 1. Write Equations 2 and 4 in the form Ya+bx. If required, round your answers to six decimal places. Equation 2: 5,- G N₂-1+ G₂₁ + $[ G₁-1 Equation 4: S 2. If actual sales are $1,500,000 in the current year, what would be the forecasted sales for Lockit in the coming year? R Square 0.94 0.90 0.81 0.96 t-Value 5.50 10.00 5.00 4.00 1.50 3.00
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