Homework SourseThe data has been correctly entered in Cells C4C17 and the L
The data has been correctly entered in Cells C4:C17 and the LINEST output in Cells C21:D25 is correct.
a.?Complete the following sentence: “The linear model is (or is not) a valid model of the trend of the data because …”
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b.?Identify any errors in the model’s specification.
c.?An incorrect entry has been made in one cell and then copied down. You should be able to spot the cell without making any calculations. Identify the cell and indicate the correct entry for it.
80% Confidence Limits, S thousand 2 Annual Revenues, $ thousand XM SFE 3 Year XData Forecast Errr years $thousand Minimum Maximur 19.97 23.32 26.68 30.06 33.45 36.87 40.30 43.75 14.88 18.34 21.80 25.26 28.72 32.18 35.64 39.10 42.56 46.02 49.47 52.93 56.39 59.85 63.31 4 1985 0 5 1986 2.89 2.83 0 18.70 20.57 6 1987 222.63 1988 3 24.89 8 1989 4 27.38 9 1990 530.12 10 1991 633.13 11 1992 7 36.44 12 1993 8 40.09 13 1994 9 44.09 4 1995 10 48.50 15 1996 11 53.35 16 1997 1258.69 17 1998 13 64.56 13.36 16.92 20.46 23.98 27.49 30.98 34.45 37.9047.22 41.3350.70 44.74 48.14 51.51 54.88 58.22 2.23 0.83 0.37 1.34 2.06 5.00 2.72 2.69 2.66 2.65 2.00 2.66 1.00 2.00 3.00 2.66 2.69 2.72 54.21 57.73 61.27 64.83 68.40 1.761 0.97 0.42 4.70 Average error0.00 8 1999 14 7.00 2.89 Student\'s 20 LINEST Output Model specification: 3.4595 14.880 Y14.880+3.4595*X 0.1691 0.9721 2.5509 418.41 2722.8 78.088 Model\'s standard error of estimate (SEE) is 2.5509 1.2936 where Y annual revenues, in dollars and X = number of years since 1985 (i.e., X-0 12 for 1985, x = 1 for 1986, etc.) Solution
a)The linear model is a valid one because when we consider the linear equation Y=3.4595X+14.880
and substitite the value of X the value of Y increases.
b)Cell no E16,E17 the error increases,
C) Error from G12 to G16 that is it starts from 2.65
