PROBLEM 5 - Price of Gold

Situation:

The U.S. Bureau of Mines produces data on the price of Minerals. The data below displays the average prices per year for several minerals over a decade.

Gold Copper Silver Aluminum

($ per oz.) (cents per lb.) ($ per oz.) (cents per lb.)

161.1 64.2 4.4 39.8

308.0 93.3 11.1 61.0

613.0 101.3 20.6 71.6

460.0 84.2 10.5 76.0

376.0 72.8 8.0 76.0

424.0 76.5 11.4 77.8

361.0 66.8 8.1 81.0

318.0 67.0 6.1 81.0

368.0 66.1 5.5 81.0

448.0 82.5 7.0 72.3

438.0 120.5 6.5 110.1

382.6 130.9 5.5 87.8

Action:

Use the above MS Excel spreadsheet data and multiple regression to produce a model to predict the average price of gold from other variables. Comment on the following:

Action:

Use the above data and multiple regression to produce a model to predict Morning Starthe average price of gold from other variables. Comment on the following:

a.Regression equation

PLACE THE ANSWER FOR PART a IN THIS SECTION DESCRIBING SHOWING THE REGRESSION EQUATION.

b.R, R2 and 1-R2, adjusted R2

PLACE THE ANSWER FOR PART b IN THIS SECTION PROVIDING THE VALUES OF R, R2, AND 1-R2 AND INTERPRETATION OF EACH ONE OF THESE VALUES.

c.Standard error of estimate

PLACE THE ANSWER FOR PART c IN THIS SECTION PROVIDING THE VALUE OF STANDARD ERROR OF ESTIMATE AND ITS INTEPRETATION.

d.Report the t's for each value and the corresponding p-values

PLACE THE ANSWER FOR PART d IN THIS SECTION PROVIDING THE t VALUES AND CORRESPONDING p VALUES FOR EACH OF THE INDEPENDENT VARIABLES.

e.Overall test of hypothesis and decision

PLACE THE ANSWER FOR PART e IN THIS SECTION.

SHOW Ho AND Ha FOR OVERAL TEST OF HYPOTHESIS.

COMPARE p-VALUE TO SIGINFICANCE LEVEL AND STATE WHETER Ho SHOULD BE REJECTED BASED ON THIS COMPARISON.

BASED ON WHETHER Ho IS/IS NOT REJECTED, STATE WHETHER THE EQUATION PROVIDED IN PART a OF THE PROBLEM IS A GOOD PREDICTOR OF THE PRICE OF GOLD.

f.Use a .05 level of significance. Cite which variables are significant and which are not significant, based on the t values and p values for each independent variable.

PLACE THE ANSWER FOR PART f IN THIS SECTION.

EXPLAIN WHTHER COPPER, SILVER, AND ALUMINUM ARE SIGNIFICANT COMPARING THE APPROPRIATE p VALUE TO THE PROBLEM STATEMENT SPECIFIED SIGNIFICANCE LEVEL.

Please use Excel and show work, explain how you solve in excel, and how you arrived at Solution. Thank you for your time.