1. Using the data in Table 8-21 and the independent variables described in Case 7-2, which regression...
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2. Is serial correlation a problem? If any coefficients are not significantly different from zero, try running a regression without these independent variables. Try experimenting with different powers for the exponential transformation.
3. Prepare a memo to Michael recommending the regression model you believe is more appropriate for predicting the cyclical nature of emergency road service call volume.
An overview of AAA Washington was provided in Case 5-5 when students were asked to prepare a time series decomposition of the emergency road service calls received by the club over five years. The time series decomposition performed in Case 5-5 showed that the pattern Michael DeCoria had observed in emergency road service call volume was probably cyclical in nature. Michael wanted to be able to predict the cyclical effect on emergency road service call volume for future years.
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