Problem: You have been assigned the task of creating a multiple regression equation of at least three variables that explains Microsoft's annual sales. Consider using a time series of data of at least 10 years. You can search for this data using the Internet.
Before running the regression, predict what sign each variable will be and explain why you make that prediction.
After running the regression, interpret the regression.
- Does the regression fit the data well?
- Does each predictor play a significant role in explaining the significance of the regression?
- Are some predictors not useful?
- If so, did you consider removing those and rerunning the regression?
- Are the predictors related too significantly to one another?