Question 3

Using Excel and Word I need to know how to show the work for and explain this question and its parts

The "Economic Report to the President of the United States" included data on the amounts of manufacturers' new and unfilled orders in millions of dollars. Shown here are the figures for new orders over a 21-year period.

Use the charting tool in Excel to develop a regression model to fit the trend effects for the data. Use a linear model and then try a polynomial (order 2) model. Make sure the charts show the line formula and the r-squared value. Include both charts in your report. Then, answer the following question:

How well does either model fit the data? Which model should be used for forecasting? Explain using the relevant metrics.

Year Total Number of New Orders

1 55,022

2 55,921

3 64,182

4 76,003

5 87,327

6 85,139

7 99,513

8 115,109

9 116,251

10 121,547

11 123,321

12 141,200

13 162,140

14 168,420

15 171,250

16 176,355

17 195,204

18 209,389

19 237,025

20 272,544

21 293,475