Discuss the regression output that contains r-square

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Reference no: EM133433368

Use Excel and information given below to derive your answers to following questions.

Firm ABC's sales from 2010 to 2020 are $480 million, $350 million, $250 million, $305 million, $520 million, $540 million, $600 million, $720 million, $400 million, $563 million, and $280 million. An Index that ABC's revenues are believed to tie to from 2010 to 2020 have the following value of 1320, 1148, 880, 1112, 1212, 1248, 1418, 1468, 903, 1096, and 1257 respectively.

Question 1. Use Excel linear regression to estimate whether ABC's sales are linearly related to the Index.

Question 2. Discuss the regression output that contains R-square, regression coefficients, and t-stat of regression coefficients.

Question 3. Estimate ABC's 2021 sales using the regression results and assuming the Index is expected to be 1400 for the year of 2021.

Reference no: EM133433368

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