Multiple Regression

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Week 4 – Assignment

Multiple Regression

For this assignment, you are required to complete Problem 64 (p. 593) in Chapter 12 of your textbook.

Use the appropriate Excel file templates from www.cengagebrain.com. Once complete, post your Excel

Document in Waypoint. Show all work.

23-64) Let Yt be the sales during month t (in thousands of dollars) for a photography studio, and

let Pt be the price charged for portraits during month t. The data are in the file Week 4 Assignment

Chapter 12 Problem 64 . Use regression to fit the following model to these data:

Yt = a + b1Yt−1 + b2Pt + et

This equation indicates that last month’s sales and the current month’s price are explanatory variables.

The last term, et, is an error term.

a. If the price of a portrait during month 21 is $10, what would you predict for sales in month 21?

b. Does there appear to be a problem with autocorrelation of the residual? Explain your answer.

Carefully review the Grading Rubric

(http://ashford.waypointoutcomes.com/assessment/20456/preview) for the criteria that will be used to

evaluate your assignment.

Waypoint Assignment

Submission

The assignments in this course will be submitted to Waypoint. Please refer to the instructions below to

submit your assignment.

1. Click on the Assignment Submission button below. The Waypoint “Student Dashboard” will open

in a new browser window.

2. Browse for your assignment.

3. Click Upload.

4. Confirm that your assignment was successfully submitted by viewing the appropriate week’s

assignment tab in Waypoint.

For more detailed instructions, refer to the Waypoint Tutorial

(https://bridgepoint.equella.ecollege.com/curriculum/file/dc358708-3d2b-41a6-a000-

ff53b3cc3794/1/Waypoint%20Tutorial )

(https://bridgepoint.equella.ecollege.com/curriculum/file/dc358708-3d2b-41a6-a000-

ff53b3cc3794/1/Waypoint%20Tutorial ) .

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Data

$18

$24

$27

$24

$27

$30

4,000

$33

$24

$27

$30

$18

$24

Sales	Price
$400,000	$15
$1,042,000	$12
$1,129,000					$24
$1,110,000			$18
$1,336,000
$1,363,000			$30
$1,177,000				$27
$603,000
$582,000	$36
$697,000
$586,000
$673,000
$546,000
	$33
$27,000
$76,000
$298,000
$746,000
$962,000	$21
$907,000