For this assignment, demonstrate your understanding of correlation by selecting two economic or business variables on which to conduct a regression analysis. Make sure your data demonstrates the independent/dependent variable relationship; make sure to distinguish between your independent and dependent variables.

The paper must include the following:

1. Graph the data using a scatter diagram.

2. Use the method of least squares to derive a trend equation and trend values.

3. Use check column to verify computations (e.g., (Y-Yc)=0) and interpret the meaning of regression coefficients.

4. Superimpose trend equation on your scatter diagram.

5. Construct forecast intervals, calculate the standard error of estimate, coefficient of determination (r2 ), and correlation (r). Interpret the meaning of r 2 and r as it relates to your variables.

6. Use your regression equation to predict the value of the dependent variable in the 21st year.