Use regression to estimate the parameters of a 6th order polynomial model for this data. That is,

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Use regression to estimate the parameters of a 6th order polynomial model for this data. That is, estimate the least squares estimates for the parameters in the following estimated regression equation:

Ŷt = b0 + b1t + b2t2 + b3t3 + b4t4 + b5t5 + b6t6

a. What are the optimal values of b0, b1, . . . , b6?

b. What are the forecasts for the next two months using this technique?

c. Comment on the appropriateness of this technique.

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Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science

ISBN: 978-0324656633

5th edition

Authors: Cliff T. Ragsdale

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Question Posted: Nov 03, 2012 06:27 AM

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Use regression to estimate the parameters of a 6th order polynomial model for this data. That is,

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a b 0 6325 b 1 0564 b 2 00557 b 3 000213 b 4 0000038 b 5 317E07 b 6 1E09 b Period Month Forecast 83 11 636 84 12 636 c We know that we can fit any data set arbitrarily well by using more and more inde...View the full answer

Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science

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