Calculate the regression in Estimate by hand calculation the regression equation of the firm's sales revenue (Y) on its quality control expenditure for the data given:
Advertising (X1) 10 9 11 12 11 12 13 13 14 15
Sales revenue (Y) 44 40 42 46 48 52 54 58 56 60
Year (t) 1 2 3 4 5 6 7 8 9 10
Quality control (X2) 3 4 3 3 4 5 6 7 7 8
Z 2 3 4 5 6 7 8 9
Y Forecast using Excel's regression function in the Data Analysis menu.
1. Enter a formula (based in cells C6 through J6 to forecast the sales revenue when quality control goes from $2 million to $9 million a year by using the coefficients found in the regression estimate.
2. Does the forecast vary much from the actual data? Graph both the actual data and forecast using the graphing tool.