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Regression and Forecasting : Using Data Regression to Predict Sales

YEAR GNP ln(gnp)
1975 1060 6.966024187
1976 1170 7.064759028
1977 1305 7.17395832
1978 1455 7.28276118
1979 1630 7.396335294
1980 1800 7.495541944
1981 2000 7.60090246
1982 2220 7.705262475
1983 2450 7.803843304
1984 2730 7.912056888

The US BNP during the years 1975-1984 is given in the above table.

a. Plot x = years after 1974 against GNP, and use the plot to describe how to fit a curve that could be used
to predict GNP during future years.

b. When the regression on transformed data is done, we find the B=6.86 and B1=0.105. What is the
prediction for 1985 GNP?

Please see the attached file for the fully formatted problems.

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Solution Preview

Please see the attached file.

The regression table can be found on the sheet"regresssion table"

YEAR GNP ln(gnp)
1975 1060 6.966024
1976 1170 7.064759
1977 1305 7.173958
1978 1455 7.282761
1979 1630 7.396335
1980 1800 7.495542
1981 2000 7.600902
1982 2220 7.705262
1983 2450 7.803843
1984 2730 7.912057

The US BNP during the years 1975-1984 is given in the above table.

a. Plot x = years after 1974 against GNP, and use the plot to describe how to fit a curve that could be used
to ...

Solution Summary

Data regression is used to predict sales. The solution is detailed and well presented.

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