Forecasting Consumer Demand using Regression

Purpose: The purpose of this assignment is to learn how to do regression analysis, a powerful statistical tool, as one way to predict future demand

Background/Scenario:

This critical thinking data set contains a number of years of a firm’s sales history. This assignment will require Excel, with a “Data Analysis” add-in installed. This can be downloaded from the Web, in about 5 minutes, OR a video lecture in Module 2 describes how to possibly find it on your computer already.

There is also a video in Module 2 showing how to do regression analysis, along with a Word document showing screen shots of the steps of the video

Assignment:

Students are required to perform regression analysis and answer the specific questions below.

a. Identify the independent and dependent variables

b. Provide a scattergraph, including the trend line of the data

c. Provide a copy of the Excel regression output

d. Write out the regression model, making sure to include the constant or intercept, and the X coefficient

e. In sentence form, interpret the regression model from part c above

f. Interpret the constant or intercept

g. Interpret the X coefficient

h. Interpret the f-statistic

i. Interpret the adjusted R2 score

j. What would be the predicted sales of autos, if the population was 400 million? Show your work