4 28 00 252cp400s Open this document in Page Layout view Last Computer Problem The data is below You need to set up Columns for REV revenue of the Coca Cola company 1986 1996 YEAR year with 1986 as zero YEARSQ YEAR squared GDP Real GDP and RMINW Real Minimum Wage as well as resid and pred Row REV YEAR GDP RMINW 1 7 0 0 5 5 3 06 2 7 7 1 5 6 2 95 3 8 3 2 5 9 2 83 4 9 0 3 6 1 2 70 5 10 2 4 6 1 2 91 6 11 6 5 6 1 3 12 7 13 0 6 6 2 3 03 8 14 0 7 6 4 2 94 9 16 2 8 6 6 2 87 10 18 0 9 6 7 2 79 11 18 5 10 6 9 2 94 To set up YEARSQ use LET YEARSQ YEAR YEAR To do the problem with all independent variables you need to do Brief K 3 Regress REV on 4 YEAR YEARSQ GDP RMINW resid pred Plot REV pred Explanation The 4 in here tells it that there are 4 explanatory independent variables This number must be correct for example if it were 3 RMINW would be zapped Brief K 3 needs to be set only once The plot shows how well you did a perfect prediction gives a 45 degree line Check the significance tests on the coefficients of your independent variables Which are not significant Which have the wrong sign Can you suggest why The rest of the assignment First Try replacing the Regress in the instruction above with Stepwise Regression as is done on page 844 of the text Second Do more regressions using Regress and Plot with appropriate changes to the number in the Regress instruction First regress REV against YEAR alone then against YEAR and YEARSQ then YEAR YEARSQ and GDP then try REV against GDP alone Create a new variable equal to GDP squared Do GDP and GDP squared do as well as YEAR and YEARSQ in predicting REV What about GDP GDP squared and YEAR Try the stepwise regression command with GDP squared added to your independent variables 1 Worksheet size 100000 cells MTB RETR C MINITAB CP4 00 MTW Retrieving worksheet from file C MINITAB CP4 00 MTW Worksheet was saved on 4 26 2000 MTB brief k 3 MTB regress rev on 4 year yearsq gdp rminw resid pred Regression Analysis The regression equation is rev 42 6 1 24 year 0 0618 yearsq 4 94 gdp 2 79 rminw Predictor Constant year yearsq gdp rminw Coef 42 56 1 2360 0 06181 4 944 2 792 s 0 3231 Stdev 14 98 0 2648 0 01117 2 028 1 455 R sq 99 6 t ratio 2 84 4 67 5 53 2 44 1 92 p 0 029 0 003 0 001 0 051 0 103 R sq adj 99 4 Analysis of Variance SOURCE Regression Error Total DF 4 6 10 SS 169 639 0 626 170 265 SOURCE year yearsq gdp rminw DF 1 1 1 1 SEQ SS 166 173 2 844 0 238 0 384 Obs 1 2 3 4 5 6 7 8 9 10 11 year 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10 0 rev 7 0000 7 7000 8 3000 9 0000 10 2000 11 6000 13 0000 14 0000 16 2000 18 0000 18 5000 MS 42 410 0 104 Fit 6 8231 7 9336 8 2067 9 1259 10 2084 11 4144 13 0872 14 3892 15 7590 17 7748 18 7776 F 406 29 Stdev Fit 0 2637 0 2276 0 1767 0 2466 0 1608 0 2345 0 1963 0 1464 0 1384 0 2524 0 2912 p 0 000 Residual 0 1769 0 2336 0 0933 0 1259 0 0084 0 1856 0 0872 0 3892 0 4410 0 2252 0 2776 St Resid 0 95 1 02 0 34 0 60 0 03 0 84 0 34 1 35 1 51 1 12 1 99 MTB plot rev pred 2 MTB stepwise rev year yearsq gdp rminw Stepwise Regression F to Enter 4 00 Response is Step Constant year T Ratio rev F to Remove on 1 5 991 1 229 19 12 4 00 4 predictors with N 11 2 6 855 0 653 4 67 yearsq T Ratio 0 058 4 27 S 0 674 0 395 R Sq 97 60 99 27 More Yes No Subcommand or Help SUBC y No variables entered or removed More Yes No Subcommand or Help SUBC n MTB regress rev on 1 year resid pred Regression Analysis The regression equation is rev 5 99 1 23 year Predictor Constant year Coef 5 9909 1 22909 s 0 6743 Stdev 0 3804 0 06429 R sq 97 6 t ratio 15 75 19 12 p 0 000 0 000 R sq adj 97 3 Analysis of Variance SOURCE Regression Error Total Obs 1 2 3 4 5 6 7 8 9 10 11 year 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10 0 DF 1 9 10 SS 166 17 4 09 170 27 rev 7 000 7 700 8 300 9 000 10 200 11 600 13 000 14 000 16 200 18 000 18 500 MS 166 17 0 45 Fit 5 991 7 220 8 449 9 678 10 907 12 136 13 365 14 595 15 824 17 053 18 282 F 365 45 Stdev Fit 0 380 0 328 0 280 0 241 0 213 0 203 0 213 0 241 0 280 0 328 0 380 p 0 000 Residual 1 009 0 480 0 149 0 678 0 707 0 536 0 365 0 595 0 376 0 947 0 218 St Resid 1 81 0 81 0 24 1 08 1 11 0 83 0 57 0 94 0 61 1 61 0 39 3 MTB regress rev on 2 year yearsq resid pred Regression Analysis The regression equation is rev 6 85 0 653 year 0 0576 yearsq Predictor Constant year yearsq Coef 6 8545 0 6533 0 05758 s 0 3950 Stdev 0 3009 0 1400 0 01348 R sq 99 3 t ratio 22 78 4 67 4 27 p 0 000 0 000 0 003 R sq adj 99 1 Analysis of Variance SOURCE Regression Error Total DF 2 8 10 SS 169 017 1 248 170 265 SOURCE year yearsq DF 1 1 SEQ SS 166 173 2 844 Obs 1 2 3 4 5 6 7 8 9 10 11 year 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10 0 rev 7 000 7 700 8 300 9 000 10 200 11 600 13 000 14 000 16 200 18 000 18 500 MS 84 509 0 156 Fit 6 855 7 565 8 392 9 …
View Full Document
Unlocking...