Question

The following data set provides information on the lottery sales, proceeds, and prizes by year in Iowa.

FY

Sales

Proceeds

Prizes

1986

$85,031,584

$27,631,613

$39,269,612

1987

$98,292,366

$31,157,797

$47,255,945

1988

$128,948,560

$40,090,157

$65,820,798

1989

$172,488,594

$49,183,227

$92,563,898

1990

$168,346,888

$50,535,644

$90,818,207

1991

$158,081,953

$44,053,446

$86,382,329

1992

$166,311,122

$45,678,558

$92,939,035

1993

$207,192,724

$56,092,638

$116,820,274

1994

$206,941,796

$56,654,308

$116,502,450

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You decided to find the linear equation that corresponds to sales and year. Create a graph using the sales and year. Add the linear equation to the graph. What is the y-intercept of the linear equation?

Round each value below to the nearest integer.

Provide your answer below:

E+

Answer 1

We use MINITAB software to calculate the linear equation that corresponds to sales and year.

The STEPS are: Click the stat option-- choose Time Series--click on trend Analysis--Input the sales data as your variable-- (since we are interested in calculating the linear equation, the model type that we choose is linear.)--(since we want our X axis as year, click on time--choose stamp--select the column which contains the year)-- click ok

We get the following Output and graph:

Fitted Trend Equation

Yt = 81737809 + 14577673×t

where t denotes the time, t=0,1,2...,9

and Yt is the predicted sales value corresponding to year t.

The y-intercept of the linear equation is: 81737809