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

X1 = marriage during the year

X2 = housing starts during the year

X3 = annual disposable personal income

X4 = 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 - .068X1 + .036X2 + 1.22X3 -19.54X4

The analyst also calculated an R² = .92 and a standard error of estimate of 11.9.

Interpret the above equation and statistics.