The following is a spreadsheet for forecasting annual revenues for the Gorsuch Corp. (check picture sent)a. Complete the following sentence: "The linear model is (or is not) a valid model of the trend of the data because ..." b. Identify any errors in the model's specification. c. An incorrect entry has been made in one cell and then copied down. You should be able to spot the cell without making any calculations. Identify the cell and indicate the correct entry for it. A BCH.1GORSUCH CORPORATION80% ConfidenceAnnual Revenues, $ thousandForecastX-XМ,Limits, $ thousand2YearSFE,$ thousand Minimum Maximum3DataErroryears18.703.822.232.892.839.7913.3616.9220.4623.9827.4919.9723.3226.6830.0641985198620.5722.6314.8818.34-7.00-6.00-5.0011987198821.8025.262.772.720.83324.89-0.37-4.0027.3819891990-1.34-2.0633.4536.878428.7232.18-3.00-2.002.692.6630.1233.1335.6439.101019911992111219931994-2.51-1.000.002.652.6430.9840.3043.7536.44-2.66-2.47734.4540.091.002.002.652.6637.9041.33842.5646.0249.4752.9356.3959.8547.2250.7044.09-1.92-0.970.422.29136.199548.5054.211011199616 199712143.002.692.722.7744.7448.1451.511557.7361.2753.354.005.0058.6964.5617 1998134.706.002.8354.8858.22Student's t =64.8368.401.7611819991463.317.002.89Average error =LINEST Output190.00Model specification:Y = 14.880 + 3.4595*Xwhere Y = annual revenues, in dollarsand X = number of years since 1985 (i.e., X = 020213.459514.880220.16910.97211.29362.5509%3D2324418.4112for 1985, X = 1 for 1986, etc.).252722.878.088Mod l's standard error of estimate (SEE) is 2.5509.The data has been correctly entered in Cells C4:C17 and the LINEST output in Cells C21:D25 iscorrect.

a)The linear model is a valid one because when we consider the linear equation Y=3.4595X+14.880 and…

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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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The following is a spreadsheet for forecasting annual revenues for the Gorsuch Corp.

(check picture sent)

a. Complete the following sentence: "The linear model is (or is not) a valid model of the trend of the data because ..."

b. Identify any errors in the model's specification.

c. An incorrect entry has been made in one cell and then copied down. You should be able to spot the cell without making any calculations. Identify the cell and indicate the correct entry for it.

A B
C
H.
1
GORSUCH CORPORATION
80% Confidence
Annual Revenues, $ thousand
Forecast
X-XМ,
Limits, $ thousand
2
Year
SFE,
$ thousand Minimum Maximum
3
Data
Error
years
18.70
3.82
2.23
2.89
2.83
9.79
13.36
16.92
20.46
23.98
27.49
19.97
23.32
26.68
30.06
4
1985
1986
20.57
22.63
14.88
18.34
-7.00
-6.00
-5.00
1
1987
1988
21.80
25.26
2.77
2.72
0.83
3
24.89
-0.37
-4.00
27.38
1989
1990
-1.34
-2.06
33.45
36.87
8
4
28.72
32.18
-3.00
-2.00
2.69
2.66
30.12
33.13
35.64
39.10
10
1991
1992
11
12
1993
1994
-2.51
-1.00
0.00
2.65
2.64
30.98
40.30
43.75
36.44
-2.66
-2.47
7
34.45
40.09
1.00
2.00
2.65
2.66
37.90
41.33
8
42.56
46.02
49.47
52.93
56.39
59.85
47.22
50.70
44.09
-1.92
-0.97
0.42
2.29
13
6.
1995
48.50
54.21
10
11
1996
16 1997
12
14
3.00
2.69
2.72
2.77
44.74
48.14
51.51
15
57.73
61.27
53.35
4.00
5.00
58.69
64.56
17 1998
13
4.70
6.00
2.83
54.88
58.22
Student's t =
64.83
68.40
1.761
18
1999
14
63.31
7.00
2.89
Average error =
LINEST Output
19
0.00
Model specification:
Y = 14.880 + 3.4595*X
where Y = annual revenues, in dollars
and X = number of years since 1985 (i.e., X = 0
20
21
3.4595
14.880
22
0.1691
0.9721
1.2936
2.5509
%3D
23
24
418.41
12
for 1985, X = 1 for 1986, etc.).
25
2722.8
78.088
Mod l's standard error of estimate (SEE) is 2.5509.
The data has been correctly entered in Cells C4:C17 and the LINEST output in Cells C21:D25 is
correct.

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