Table 3 Percent change in income Percent Change in appliance sold Quarter Percent change in income Percent Change in appliance sold Quarter 1 -2.3 -2.5 -1.0 1.0 2 -1.5 -1.0 7 0.7 1.4 3 2.8 7.4 8 5.2 3.4 4 0.5 2.6 -2.5 -0.5 5 4.6 8.5 10 1.7 1.8
An electronic appliance manufacturer wants to know if there is a relationship between percentage change in deposable personal income which is reported quarterly by the government, and the percentage change in appliances sold by the manufacturer following same years of quarterly data. Brenda Chee and Clarence Paulus lead an analyst team has obtained data for the past 10 quarters. (Hint: Provides your answers in two decimal points)
(a) What
(b) Develop the forecasting model that you have proposed in (a).
(c) Compute the relationship for these data. In your opinion, is the relationship between independent variable strong enough to base a predictive the dependent variable? Explain your answer.
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