TABLE 16-8 The president of a chain of department stores believes that her store

Question

TABLE 16-8 The president of a chain of department stores believes that her stores' total sales have been showing a linear trend since 1980. She uses Microsoft Excel to obtain the partial output below. The dependent variable is sales (in millions of dollars), while the independent variable is coded years, where 1980 is coded as 0, 1981 is coded as 1, etc.             

Summary Output

Regression Statistics

Multiple R                    0.604

R Square                      0.365

Adjusted R Square       0.316

Standard Error                       4.800

Observations                   17

                   Coefficients

Intercept          31.2

Coded Year         0.78  

Referring to Table 16-8, the fitted trend value (in millions of dollars) for 1985 is __________.

Question 15 options:

.365

31.2

35.1

35.88

.365

31.2

35.1

35.88

Explanation / Answer

Fitted trend value=31.2+0.78 coded year

coded year for 1985=6

Hence the fitted trend value (in millions of dollars) for 1985 =31.2+0.78x6=35.88

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