Statistics for Management and Economics (Book Only)
Statistics for Management and Economics (Book Only)
11th Edition
ISBN: 9781337296946
Author: Gerald Keller
Publisher: Cengage Learning
Question
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Chapter 17, Problem 58CE

a:

To determine

Derive the regression equation.

a:

Expert Solution
Check Mark

Explanation of Solution

The ANOVA table output is obtained using the statistical software. The result is given below:

Statistics for Management and Economics (Book Only), Chapter 17, Problem 58CE , additional homework tip  1

The general regression line can be derived as follows:Intercept is denoted by IC and the coefficient is denoted by CE

VariableDependent=IC+CEX1×X1+CEX2×X2+...+CEXn×Xn        (1)

Substitute the respective value in Equation (1) to derive the regression equation.

y^=164.01+0.14×X1+0.0313×X2

b:

To determine

Testing the hypothesis.

b:

Expert Solution
Check Mark

Explanation of Solution

The null hypothesis (H0) β1=0 and the alternative hypothesis (H1) is β10.

The calculated t value is 1.72 and the p value is 0.0974. Since the p value is significantly different from 0, the alternate hypothesis is not accepted.

c:

To determine

Testing the new hypothesis.

c:

Expert Solution
Check Mark

Explanation of Solution

The null hypothesis (H0) β2=0 and the alternative hypothesis (H1) is β20.

The calculated t value is 4.64 and the p value is 0.0001. Since the p value is nearly equal to 0, the alternate hypothesis is accepted.

d:

To determine

Standard error.

d:

Expert Solution
Check Mark

Explanation of Solution

The standard error is 63.08 and the R square value is 0.4572. This indicates the good fit of the model.

e

To determine

Normality requirement.

e

Expert Solution
Check Mark

Explanation of Solution

The distribution of the variable is obtained using the statistical software. The result is given below:

Statistics for Management and Economics (Book Only), Chapter 17, Problem 58CE , additional homework tip  2

The required condition is that the variable should be distributed normally. Since the histogram is bell shaped, the error variable is distributed normally. Thus, the required condition is satisfied.

The variance of the error is obtained using the statistical software. The result is given below:

Statistics for Management and Economics (Book Only), Chapter 17, Problem 58CE , additional homework tip  3

From Figure 2, it is known that the error variable is not constant.

f:

To determine

Calculate the upper limit and the lower limit.

f:

Expert Solution
Check Mark

Explanation of Solution

The upper limit and the lower limit areobtained using the statistical software. The result is given below:

Statistics for Management and Economics (Book Only), Chapter 17, Problem 58CE , additional homework tip  4

The lower limit is 69.2 and the upper limit is 349.3.

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Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Chapter 17 Solutions

Statistics for Management and Economics (Book Only)

Ch. 17.2 - Prob. 11ECh. 17.2 - Prob. 12ECh. 17.2 - Prob. 13ECh. 17.2 - Prob. 14ECh. 17.2 - Prob. 15ECh. 17.2 - Prob. 16ECh. 17.2 - Prob. 17ECh. 17.2 - Prob. 18ECh. 17.2 - Prob. 19ECh. 17.2 - Prob. 20ECh. 17.2 - Prob. 21ECh. 17.2 - Prob. 22ECh. 17.2 - Prob. 23ECh. 17.2 - Prob. 24ECh. 17.3 - Prob. 25ECh. 17.3 - Prob. 26ECh. 17.3 - Prob. 27ECh. 17.3 - Prob. 28ECh. 17.3 - Prob. 29ECh. 17.3 - Prob. 30ECh. 17.3 - Prob. 31ECh. 17.3 - Prob. 32ECh. 17.3 - Prob. 33ECh. 17.3 - Prob. 34ECh. 17.3 - Prob. 35ECh. 17.3 - Prob. 36ECh. 17.3 - Prob. 37ECh. 17.3 - Prob. 38ECh. 17.3 - Prob. 39ECh. 17.3 - Prob. 40ECh. 17.3 - Prob. 41ECh. 17.3 - Prob. 42ECh. 17.3 - Prob. 43ECh. 17.3 - Prob. 44ECh. 17.3 - Prob. 45ECh. 17.3 - Prob. 46ECh. 17.4 - Prob. 47ECh. 17.4 - Prob. 48ECh. 17.4 - Prob. 49ECh. 17.4 - Prob. 50ECh. 17.4 - Prob. 51ECh. 17.4 - Prob. 52ECh. 17.4 - Prob. 53ECh. 17.4 - Prob. 54ECh. 17.4 - Prob. 55ECh. 17.4 - Prob. 56ECh. 17.4 - Prob. 57ECh. 17.A - Prob. 1ECh. 17.A - Prob. 2ECh. 17.A - Prob. 3ECh. 17.A - Prob. 4ECh. 17.A - Prob. 5ECh. 17.A - Prob. 6ECh. 17.A - Prob. 7ECh. 17.A - Prob. 8ECh. 17.A - Prob. 9ECh. 17.A - Prob. 10ECh. 17.A - Prob. 11ECh. 17.A - Prob. 12ECh. 17.A - Prob. 13ECh. 17.A - Prob. 14ECh. 17.A - Prob. 15ECh. 17.A - Prob. 16ECh. 17.A - Prob. 17ECh. 17.A - Prob. 18ECh. 17.A - Prob. 19ECh. 17.A - Prob. 20ECh. 17.A - Prob. 21ECh. 17.A - Prob. 22ECh. 17.A - Prob. 23ECh. 17.A - Prob. 24ECh. 17.A - Prob. 25ECh. 17.A - Prob. 26ECh. 17.A - Prob. 27ECh. 17.A - Prob. 28ECh. 17.A - Prob. 29ECh. 17.A - Prob. 30ECh. 17.A - Prob. 31ECh. 17.A - Prob. 32ECh. 17.A - Prob. 33ECh. 17.A - Prob. 34ECh. 17.A - Prob. 35ECh. 17.A - Prob. 36ECh. 17.A - Prob. 37ECh. 17.A - Prob. 38ECh. 17.A - Prob. 39ECh. 17.A - Prob. 40ECh. 17.A - Prob. 41ECh. 17.A - Prob. 42ECh. 17.A - Prob. 43ECh. 17 - Prob. 58CECh. 17 - Prob. 59CECh. 17 - Prob. 60CE
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