Question: Construct multiple linear regression model with Period, AIP, DIFF, and ADV as independent variables. Formulate the equation and explain the output. Rank variables based on

Construct multiple linear regression model with Period, AIP, DIFF, and ADV as independent variables. Formulate the equation and explain the output. Rank variables based on their degree of contribution to the model. Observe significant F, R-squared, and p-values and explain.

Perform multiple linear regression analysis with Period, DIFF, and ADV as independent variables. Formulate the equation. Which variable is the most significant predictor of demand? Rank the independent variables based on their degree of contribution to the model. Observe significant F, R-squared, and p-values and explain.

10- Use the model obtained in parts 2 and make forecasts for the following months.

Period Price AIP ADV

Oct. 2021 $7.50 $7.25 $12.9

Nov. 2021 $7.75 $7.30 $13.5

Dec. 2021 $7.90 $7.75 $13.7

11- Provide a brief conclusion based on above analysis.

Construct multiple linear regression model with Period, AIP, DIFF, and ADV

AIP Month/Yr. Aug. 2019 5.8 DIFF -0.3 0.25 0.6 0 Jan. 2020 6 6.3 5.7 5.85 5.8 5.75 5.85 5.65 6 6.1 6 6.1 6.2 ADV 5.3 6.75 7.25 7.3 7.2 6.5 6.75 6.89 5.8 5.5 6.5 6.25 7 6.9 11 5.75 6.1 6.8 PERIOD PRICE 6.1 2 5.75 3 5.7 4 5.7 5 5.6 6 5.6 7 5.6 8 6.3 9 6.4 10 6.2 5.9 12 5.9 13 5.7 14 15 5.75 16 5.8 17 5.7 18 5.8 19 5.7 20 5.8 21 5.8 22 5.75 23 5.7 24 5.55 25 5.6 26 5.65 27 5.7 28 5.75 29 5.8 30 5.3 31 5.4 32 5.7 33 5.9 34 35 36 0.25 0.2 0.15 -0.45 -0.75 -0.2 0.2 0.1 0.4 0.45 0.35 0.3 0.5 0.5 0.4 -0.05 -0.05 -0.1 0.2 0.1 0.5 0.6 -0.05 6.1 6.2 6.3 6.1 5.75 5.75 5.65 5.9 5.65 6.1 6.25 5.65 5.75 5.85 6.25 6.3 6.4 6.5 Jan. 2021 DEMAND 14.3 15.3 16.7 16.2 16.1 15.5 15.2 13.7 13.0 12.8 13.6 14.7 15.3 16.4 17.8 17.7 17.4 17.0 16.7 16.1 15.9 15.9 16.2 17.7 18.2 19.0 19.8 20.2 19.9 19.7 19.3 18.4 18.3 6.8 7.1 7 7.2 7.5 7.8 8.2 8.3 8.4 8.9 9.1 9.3 9.4 9.3 9.4 9.5 9.6 9.7 Jan. 2022 0.05 0.95 0.9 0.7 0.6 May-22 Jun-22 Jul-22 AIP Month/Yr. Aug. 2019 5.8 DIFF -0.3 0.25 0.6 0 Jan. 2020 6 6.3 5.7 5.85 5.8 5.75 5.85 5.65 6 6.1 6 6.1 6.2 ADV 5.3 6.75 7.25 7.3 7.2 6.5 6.75 6.89 5.8 5.5 6.5 6.25 7 6.9 11 5.75 6.1 6.8 PERIOD PRICE 6.1 2 5.75 3 5.7 4 5.7 5 5.6 6 5.6 7 5.6 8 6.3 9 6.4 10 6.2 5.9 12 5.9 13 5.7 14 15 5.75 16 5.8 17 5.7 18 5.8 19 5.7 20 5.8 21 5.8 22 5.75 23 5.7 24 5.55 25 5.6 26 5.65 27 5.7 28 5.75 29 5.8 30 5.3 31 5.4 32 5.7 33 5.9 34 35 36 0.25 0.2 0.15 -0.45 -0.75 -0.2 0.2 0.1 0.4 0.45 0.35 0.3 0.5 0.5 0.4 -0.05 -0.05 -0.1 0.2 0.1 0.5 0.6 -0.05 6.1 6.2 6.3 6.1 5.75 5.75 5.65 5.9 5.65 6.1 6.25 5.65 5.75 5.85 6.25 6.3 6.4 6.5 Jan. 2021 DEMAND 14.3 15.3 16.7 16.2 16.1 15.5 15.2 13.7 13.0 12.8 13.6 14.7 15.3 16.4 17.8 17.7 17.4 17.0 16.7 16.1 15.9 15.9 16.2 17.7 18.2 19.0 19.8 20.2 19.9 19.7 19.3 18.4 18.3 6.8 7.1 7 7.2 7.5 7.8 8.2 8.3 8.4 8.9 9.1 9.3 9.4 9.3 9.4 9.5 9.6 9.7 Jan. 2022 0.05 0.95 0.9 0.7 0.6 May-22 Jun-22 Jul-22

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

s Make sure to use the de-seasonalized demand data for this model and all future models. 11-Repeat part (10) with DIFF as the independent variable. 12-Construct multiple linear regression model with...

I need the explanation 2- Construct multiple linear regression model with Period, AIP, DIFF, and ADV as independent variables. Formulate the equation, find MAD, and explain the output. Rank variables...

1 2 . Construct multiple linear regression model with Period, AIP, DIFFand ADV as independent variables. Formulate the equation, find MAD, and explain the output. Rank variables based on their degree...

11:06 all - 0 Done Forecasting Project Summer202... Based on the table provided, R is 90% due to the four variables that we used which were Period, AIP, DIFF, and ADV. The significance F is...

13. Perform multiple linear regression analysis with Period, DIFF, and ADV as independent variables. Formulate the equation and find MAD. Which variable is the most significant predictor of demand?...

Q9some type is wrong, can refer to the attach file. In a study of the relationship between an explanatory variable Z and a response variable Y , n independent observations are taken in the form of...

Month/Yr. Jan. 2016 PERIOD PRICE AIP 1 5.4 5.9 2 5.5 6.6 3 6.0 6.4 4 6.1 6.1 5 5.9 6.4 6 5.9 6.3 7 5.9 6.0 8 6.8 6.0 9 6.8 5.8 10 6.4 6.3 11 6.5 6.3 12 6.3 6.2 13 6.1 6.5 14 6.1 6.6 15 6.0 6.3 16 6.4...

The Fresh Detergent Case Enterprise Industries produces Fresh, a brand of liquid detergent. In order to more effectively manage its inventory, the company would like to better predict demand for...

8- Use regression to perform trend analysis on the de-seasonalized demand values. Is trend analysis suitable for this data? Find MAD and explain the Excel Regression output (trend equation, r,...

Forecasting Case Analysis MGT 3332 Fall 2019 The Fresh Detergent Case Enterprise Industries produces Fresh, a brand of liquid detergent. In order to more effectively manage its inventory, the company...

A company uses a predetermined manufacturing overhead rate of 80% based on direct labor dollars. During the year, $538,112factory labor was incurred of which $124,506 was indirect labor. How much...

Consider the overdamped mass-spring equation If the mass starts out a distance 1 away from equilibrium, how large must the initial velocity be in order that it pass through equilibrium once? + 6 + 5u...

5 Points Explain , in detail, how you would use a test of subsequent disbursements in a search for unrecorded liabilities for an audit of client financials for the year ended December 3 1 , 2 0 2 5 ....

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...