Is trend analysis suitable for this data? Explain the Excel Regression output (t

Question

Is trend analysis suitable for this data? Explain the Excel Regression output (trend equation, r, r-squared, goodness of model).

SUMMARY OUTPUT Regression Statistics Multiple R 0.94405524 Square Adjusted R Square Standard Error Observations 0.887731919 0.422078124 ANOVA MS Significance F Regression Residual Total 5.25579318 45.25579318 254.032 5.522648238 0.178149943 50.77844141 1.7435E-16 31 32 Coefficents Standard Error t Stat 0.150353411 93.67050208 1.34E-39 0.007716352 15.93838255 1.74E-16 P-value Lower 95% Intercept PERIOD 14.08367946 0.122986175 Demand-14.08+0.1230(Period) 13.77703166 0.107248571 RESIDUAL OUTPUT

Explanation / Answer

According to the output

Trend equation : The yellow highlighted portion is our trend equation which is been made from the the coefficient and intercept value. the equation is supposed to be Y = 14.08 + .1229X

which has directly been written in the form Demand = 14.08 + 0.1230(Period).

r-squared: The Coefficient of Determination. It tells you how many points fall on the regression line. for example, we have our r-squared value as .8912 which means that 89.12% of the variation of y-values around the mean are explained by the x-values. In other words, 89.12% of the values fit the model.

which also corresponds to the goodness of the model fit.(The goodness of fit of a statistical model describes how well it fits a set of observations.)

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