Question

Consider the following time series: 1 2 3 4 4 7 9 10 The forecast for period 5, to two decimal places, would be Hint: You have to first find the estimated regression equation. You can do this in Excel in three ways: 1). Make a scatterplot of the data above, right-click on the data, and use the "Add trendline" option. Check the box that says "display the equation on the chart." 2). Fit the regression model using the Data Analysis Toolpak. 3). Go into a blank cell in a worksheet and use the SLOPE function to find the slope and the INTERCEPT function to find the intercept. 10.0 4.5 3.47 12.5 2.5

Answer 1

A B C | G H J K L M N 0 P 0 X Y SUMMARY OUTPUT y = 2x + 2.5 Series1 Regression Statistics Multiple F 0.9759 R Square 0.952381 Adjustedi 0.928571 Standard I 0.707107 Observati - Linear (Series1) 4 ANOVA o df SS MS F gnificance F 40 0.0241 Slope Intercept Regressio Residual Total 2 SLOPE(C2:C5,B2:35) 2.5 INTERCEPT(C2:C5,B2:35) 1 2 3 20 0.5 20 1 21 Coefficientandard Errt Stat P-value Lower 95%Upper 95%ower 95.09pper 95.0% Intercept 2.5 0.866025 2.886751 0.101973 -1.22621 6.226207 -1.22621 6.226207 X Variable 2 0.316228 6.324555 0.0241 0.639382 3.360618 0.639382 3.360618

Intercept is 2.5

Slope is 2

Y = 2X+2.5