Question

The following table of values gives a company's annual profits in millions of dollars. Rescale the...

The following table of values gives a company's annual profits in millions of dollars. Rescale the data so that the year 2001 corresponds to  x = 0.

Year 2001 2002 2003 2004 2005 2006
Profits (in millions of dollars) 23.8 25.2 26.3 28.9 27.6 28.4


Find the cubic regression model for the data. Which of these is the coefficient of the  x2  term of the cubic regression model?

a) -0.7714

b) 1.5214

c) -0.3303

d) 0.9784

e) 0.0667

f) None of the above

Homework Answers

Answer #1
y x x^2 x^3
23.8 0 0 0
25.2 1 1 1
26.3 2 4 8
28.9 3 9 27
27.6 4 16 64
28.4 5 25 125

applying multiple regression from excel: data - data analysis - regression tool"

Coefficients Standard Error t Stat P-value
Intercept 23.7238 0.9807 24.1917 0.0017
x 1.5294 1.9048 0.8029 0.5063
x^2 0.0667 0.9466 0.0704 0.9503
x^3 -0.0389 0.1243 -0.3128 0.7840

from above

x2  term of the cubic regression model =0.0667

option E is correct

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