(A) Phoenix Lumber Company uses the number of construction permits issued to help estimate demand (sales). The firm collected the following data on annual sales and number of construction permits issued in its market area: No. of Construction Sales Year Permits Issued (000) (1,000,000) 2003 6.50 10.30 2004 6.20 10.10 2005 6.60 10.50 2006 7.30 10.80 2007 7.80 11.20 2008 8.20 11.40 2009 8.30 11.30 (a) Which variable is the dependent variable and which is the independent variable? (b) Determine the estimated regression line. (c) Calculate the coefficient of determination. Give an economic interpretation to the value obtained. (d) Suppose that 8,000 construction permits are expected to be issued in 2010. What would be the point estimate of Phoenix Lumber Company's sales for 2010? Q 3. (B) Following output for the multiple regression problem shows results as results. SUMMARY OUTPUT Regression Statistics Multiple R 0.70955 R Square 0.503461 Adjusted R Square 0.410359 Standard Error 2.130054 Observations 20 ANOVA df SS MS F Significance F Regression 3 73.60593 24.53531 5.40767 0.0092117 Residual 16 72.59407 4.537129 Total 19 146.2 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 48.63081 6.3247384 7.688984 9.2E-07 35.222968 62.038661 Price of Coke -0.3035 0.1711745 -1.77307 0.09525 -0.6663779 0.0593694 Ad Expenditure 0.342937 0.1655882 2.071021 0.05489 -0.0080947 0.6939678 Pepsi Price 0.23406 0.1393504 1.679653 0.11244 -0.0613493 0.5294699 Find and Interpret Adjusted Coefficient of Determination, Adjusted R2, and the Correlation Coefficient, R. The ANOVA table gives the F statistic for testing the claim that there is no significant relationship between your all of your independent and dependent variables. The sig. value is your p value. Using p-value decide you should Reject or Accept claim. Write the Fitted Regression line from the results? Decide about significance using the p-value.

(A) Phoenix Lumber Company uses the number of construction permits issued to help estimate demand (sales). The firm collected the following data on annual sales and number of construction permits issued in its market area: No. of Construction Sales Year Permits Issued (000) (1,000,000) 2003 6.50 10.30 2004 6.20 10.10 2005 6.60 10.50 2006 7.30 10.80 2007 7.80 11.20 2008 8.20 11.40 2009 8.30 11.30 (a) Which variable is the dependent variable and which is the independent variable? (b) Determine the estimated regression line. (c) Calculate the coefficient of determination. Give an economic interpretation to the value obtained. (d) Suppose that 8,000 construction permits are expected to be issued in 2010. What would be the point estimate of Phoenix Lumber Company's sales for 2010? Q 3. (B) Following output for the multiple regression problem shows results as results. SUMMARY OUTPUT Regression Statistics Multiple R 0.70955 R Square 0.503461 Adjusted R Square 0.410359 Standard Error 2.130054 Observations 20 ANOVA df SS MS F Significance F Regression 3 73.60593 24.53531 5.40767 0.0092117 Residual 16 72.59407 4.537129 Total 19 146.2 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 48.63081 6.3247384 7.688984 9.2E-07 35.222968 62.038661 Price of Coke -0.3035 0.1711745 -1.77307 0.09525 -0.6663779 0.0593694 Ad Expenditure 0.342937 0.1655882 2.071021 0.05489 -0.0080947 0.6939678 Pepsi Price 0.23406 0.1393504 1.679653 0.11244 -0.0613493 0.5294699 Find and Interpret Adjusted Coefficient of Determination, Adjusted R2, and the Correlation Coefficient, R. The ANOVA table gives the F statistic for testing the claim that there is no significant relationship between your all of your independent and dependent variables. The sig. value is your p value. Using p-value decide you should Reject or Accept claim. Write the Fitted Regression line from the results? Decide about significance using the p-value.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

(A)

Phoenix Lumber Company uses the number of construction permits issued to help estimate demand (sales). The firm collected the following data on annual sales and number of construction permits issued in its market area:

	No. of Construction	Sales
Year	Permits Issued (000)	(1,000,000)

2003	6.50	10.30
2004	6.20	10.10
2005	6.60	10.50
2006	7.30	10.80
2007	7.80	11.20
2008	8.20	11.40
2009	8.30	11.30

(a)	Which variable is the dependent variable and which is the independent variable?
(b)	Determine the estimated regression line.
(c)	Calculate the coefficient of determination. Give an economic interpretation to the value obtained.
(d)	Suppose that 8,000 construction permits are expected to be issued in 2010. What would be the point estimate of Phoenix Lumber Company's sales for 2010?

Q 3. (B)

Following output for the multiple regression problem shows results as results.

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.70955
R Square	0.503461
Adjusted R Square	0.410359
Standard Error	2.130054
Observations	20

ANOVA
	df	SS	MS	F	Significance F
Regression	3	73.60593	24.53531	5.40767	0.0092117
Residual	16	72.59407	4.537129
Total	19	146.2

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	48.63081	6.3247384	7.688984	9.2E-07	35.222968	62.038661
Price of Coke	-0.3035	0.1711745	-1.77307	0.09525	-0.6663779	0.0593694
Ad Expenditure	0.342937	0.1655882	2.071021	0.05489	-0.0080947	0.6939678
Pepsi Price	0.23406	0.1393504	1.679653	0.11244	-0.0613493	0.5294699

Find and Interpret Adjusted Coefficient of Determination, Adjusted R², and the Correlation Coefficient, R.
The ANOVA table gives the F statistic for testing the claim that there is no significant relationship between your all of your independent and dependent variables. The sig. value is your p value. Using p-value decide you should Reject or Accept claim.
Write the Fitted Regression line from the results?
Decide about significance using the p-value.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.