# Question

Can the annual new orders for manufacturing in the United States be predicted by the raw steel production in the United States? Shown below are the annual new orders for 10 years according to the U.S. Census Bureau and the raw steel production for the same 10 years as published by the American Iron & Steel Institute? Use these data to develop a regression model to predict annual new orders by raw steel production. Construct a scatter plot and draw the regression line through the points.

Raw Steel Production New Orders

(100,000s of net tons) .... ($ trillions)

99.9 ............ 2.74

97.9 ............ 2.87

98.9 ............ 2.93

87.9 ............ 2.87

92.9 ............ 2.98

97.9 ............ 3.09

100.6 .......... 3.36

104.9 ...........3.61

105.3 ...........3.75

108.6 ...........3.95

Raw Steel Production New Orders

(100,000s of net tons) .... ($ trillions)

99.9 ............ 2.74

97.9 ............ 2.87

98.9 ............ 2.93

87.9 ............ 2.87

92.9 ............ 2.98

97.9 ............ 3.09

100.6 .......... 3.36

104.9 ...........3.61

105.3 ...........3.75

108.6 ...........3.95

## Answer to relevant Questions

Determine the equation of the regression line for the following data, and compute theresiduals.In problem 12.10, you were asked to develop the equation of a regression model to predict the number of business bankruptcies by the number of firm births. Using this regression model and the data given in problem 12.10 (and ...Determine the SSE and the se for Problem 12.7.Use the residuals computed in Problem 12.15 (for Problem 12.7) and determine how many of them are within ± 1se and ± 2se. How do these numbers compare with what the empirical ...Test the slope of the regression line determined in Problem 12.6. Use α =.05.Construct a 99% confidence interval for the average bond rate in Problem 12.9 for a prime interest rate of 10%.Discuss the meaning of this confidence interval.Bond Rate .. Prime Interest Rate5% ....... 16%12 ....... 69 ...Post your question

0