Question

Shown below are rental and leasing revenue figures for office machinery and equipment in the United States over a 7-year period according to the U.S. Census Bureau. Use this data and the regression tool in the data analysis tool pack to run a linear regression. Based on the formula you get from the regression output, answer the following questions: a) What is the forecast for the rental and leasing revenue for the year 2011? b) How confident are you in this forecast? Explain your answer by citing the relevant metrics. Year Rental and Leasing ($ millions) 2004 5,860 2005 6,632 2006 6,543 2007 5,952 2008 5,732 2009 5,423 2010 4,589

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Answer 1

Answer. Date: ----21/5/2019 Shown below are rental and leasing revenue figures for office machinery and equipment in the United States over a 7-year period according to the U.S. Census Bureau. Use this data and the regression tool in the data analysis toolpack to run a linear regression. Based on the formula you get from the regression output, answer the following questions: a) What is the forecast for the rental and leasing revenue for the year 2011? Rental & leasing (Smillions) year 2004 5860 2005 6632 6543 2006 2007 5952 4 2008 5732 5423 2009 6 4589 2010

The regression line Rental & leasing 6824.714286 -251.5*t For the year 2011, t-8 Predicted Rental& leasing 6824.714286-251.5*84812.71 b) How confident are you in this forecast? Explain your answer by citing the relevant metrics. Calculated F=7.97, P=0.0369 which is < 0.05 level of significane. The regression model is significant at 5% level. We are 95% confidence of this forecast. SUMMARY OUTPUT Regression Statistics le R 0.783944161 R Square 0.614568447

Adjusted R 0.537482137 Square 471.3250319 Error Observations7 ANOVA MS Significance df 17710631771063 7.972472 0.036954 Regression 1 Residual 1110736 222147.3

Total 6 2881799 Coefficients Standard t Stat P-value Lower 95% Upper Erro 95% 6824.714286 398.3424 17.13279 1.24E-055800.743 7848.686 ntercept 89.07206-2.82356 0.036954 -480.467 22.533 251.5