The ‘Economic Report to theDirectorincluded data on the amountsof manufacturers' new and unfilled orders in millions of dollars. Shown beloware the figures for new orders over a 21-year period.
a) Use Excel to develop a regression model to fit the trend effects for the data. Use a linear model and then try a quadratic model.
b) How well does either model fit the data?
| Year |
Total number or new orders |
| 1 |
55022 |
| 2 |
55921 |
| 3 |
64182 |
| 4 |
76003 |
| 5 |
87327 |
| 6 |
85139 |
| 7 |
99513 |
| 8 |
115109 |
| 9 |
131629 |
| 10 |
147604 |
| 11 |
156359 |
| 12 |
168025 |
| 13 |
162140 |
| 14 |
175451 |
| 15 |
192879 |
| 16 |
195706 |
| 17 |
195204 |
| 18 |
209389 |
| 19 |
227025 |
| 20 |
240758 |
| 21 |
243643 |
For this question you will need to use the regression tool from the Analysis Toolpak.