1. I would like to a use the regression equation: Y'= a + bX Please present the calculations and results and ANOVA
Graphs using a scatter diagram
Compute a moving average.
2. Determine a linear trend equation.
3. Compute a trend equation for a nonlinear trend.
4. Use a trend equation to forecast future time periods and to develop seasonally adjusted forecasts.
5. Make all possible observations and interpret the result
Prices Earning Billons
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Calculations are done in Excel.
1. I would like to a Use the regression equation: Y'= a + bX Please present the calculations and results and ANOVA
The general form of simple linear regression is Y= a + bX Where Y is the dependent variable and X is the independent variable. a and be are known as the regression coefficients .They are estimated by the method of least squares. The estimates of a and b are given by
The parameter b measures the impact of unit change in X on the dependent variable Y. It is the slope of the regression line. The parameter a is the value of Y when X=0. It is known as the Intercept term
The regression equation can be used to predict the value of Y for a given X. The predicted value of Y is given by
The correlation is given by the formula
The square of correlation between X and Y is known as the coefficient of determination (R2) . R2 gives the percentage of variation that can be predicated using the regression equation.
Time Prices: X Earning Billons ...
This solution discusses regression and linear trend equations. Calculations for results and ANOVA are determined.