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.
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
Deliverable:
A Word document answering questions a,d-j, AND including a copy and pasted scattergraph [b above], and
regression results from Excel[c above]