Practical Management Science, Loose-leaf Version
5th Edition
ISBN: 9781305631540
Author: WINSTON, Wayne L.; Albright, S. Christian
Publisher: Cengage Learning
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Chapter 14.4, Problem 13P
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To interpret: The regression coefficients and standard error and R-square value.
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Let Period t=1 refer to the observation in quarter 1 of year 1; Period t=2 refer to the observation in quarter 2 of year 1; ... and Period t=20 refer to the observation in quarter 4 of year 5. Using the dummy variables defined in part (b) and Period (t), develop an estimated regression equation to account for seasonal effects and any linear trend in the time series. Based upon the seasonal effects on the data and linear trend, compute the estimates of quarterly sales for year 6.
Report the estimate of sales for Year 6: Quarter 1, Quarter 2, Quarter 3, and Quarter 4
Round to a whole number
Rhonda Clark, a Slippery Rock, Pennsylvania, realestate developer, has devised a regression model to help determineresidential housing prices in northwestern Pennsylvania. The
model was developed using recent sales in a particular neighbor-hood. The price ( Y ) of the house is based on the size (square foot-age 5 X ) of the house. The model is:
Y = 13,473 + 37.65XThe coefficient of correlation for the model is 0.63.a) Use the model to predict the selling price of a house that is1,860 square feet.b) An 1,860-square-foot house recently sold for $95,000. Explainwhy this is not what the model predicted.
c) If you were going to use multiple regression to develop such amodel, what other quantitative variables might you include?d) What is the value of the coefficient of determination in thisproblem?
Chapter 14 Solutions
Practical Management Science, Loose-leaf Version
Ch. 14.3 - Prob. 1PCh. 14.3 - Prob. 2PCh. 14.3 - Prob. 3PCh. 14.3 - Prob. 4PCh. 14.3 - Prob. 5PCh. 14.3 - Prob. 6PCh. 14.3 - Prob. 7PCh. 14.3 - Prob. 8PCh. 14.3 - Prob. 9PCh. 14.3 - Prob. 10P
Ch. 14.4 - Prob. 12PCh. 14.4 - Prob. 13PCh. 14.4 - Prob. 14PCh. 14.4 - Prob. 15PCh. 14.4 - Prob. 16PCh. 14.4 - Prob. 17PCh. 14.6 - Prob. 19PCh. 14.6 - Prob. 20PCh. 14.6 - The file P14_21.xlsx contains the weekly sales of...Ch. 14.6 - Prob. 22PCh. 14.7 - Prob. 23PCh. 14.7 - Prob. 24PCh. 14.7 - Prob. 25PCh. 14.7 - Prob. 26PCh. 14.7 - Prob. 27PCh. 14.7 - Prob. 28PCh. 14.7 - Prob. 29PCh. 14.7 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 34PCh. 14 - Prob. 35PCh. 14 - Prob. 36PCh. 14 - Prob. 37PCh. 14 - Prob. 39PCh. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Prob. 43PCh. 14 - Prob. 44PCh. 14 - Prob. 45PCh. 14 - Prob. 46PCh. 14 - Prob. 49P
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