Question: LINEAR REGRESSION CASE A manufacturer asks you for analysis, using the Linear Regression Technique, to observe the behavior of some of its Final Products. NOTE

LINEAR REGRESSION CASE

A manufacturer asks you for analysis, using the Linear Regression Technique, to observe the behavior of some of its Final Products.

  • NOTE 1: Present all the steps to make the analysis efficient and effective.
  • NOTE 2: Sales with Index 1, Sales with Index 2, Sales with Index 3.

Once solved, a report should be written with the following steps

Step #1: Presentation of the data.

Step #2: Graphing.

Step #3: Analysis of the graph.

Step #4: Least Squares Method.

Step #5: Calculation of constants.

Step #6: Presentation of the Linear Equation.

Step #7: Application of the Correlation Coefficient.

For this purpose, the following table is presented:

Year Sales Index 1 Index 2 Index 3
1 12,000 100 114 99
2 22,500 108 116 108
3 23,100 114 108 115
4 14,800 104 104 106
5 11,100 105 108 104

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