Question:

1. An analyst sought to predict the annual sales for a home-furnishing manufacturer using the following predictor variables :

X 1 = marriage during the year

X 2 = housing starts during the year

X 3 = annual disposable personal income

X 4 = time trend (first year = 1, second year = 2, and so forth)

Using data for 24 years, the analyst calculated the following estimating equation:

Y = 49.85 - .068 X 1 + .036 X 2 + 1.22 X 3 -19.54 X 4

The analyst also calculated an R ² = .92 and a standard error of estimate of 11.9.

Interpret the above equation and statistics.

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document