Assignment Description:
You are provided with a regression dataset along with this assignment file which shows data of average US annual consumption (in $) and disposable income (in $) for the years 2000 to 2016. Using this dataset perform regression analysis in MS Excel.
Part A: (10 Marks)
Perform the following tasks:
- Perform simple linear regression for the dataset provided and produce the results sheet in excel. (5 Marks)
Student Output Screenshot(s): Copy the screenshot of the output here.
- Find the sample linear regression equation for the model and then compute (show calculations) the predicted consumption if disposal income is:
- $34,000
- $35,000
- $40,000
(5 Marks)
Answer:
Part B: (10 Marks)
Write an analysis/summary report of your regression analysis conducted in Part A. Provide examples of what decisions can be made for the dependent variable based on a given value of independent variable. For example, change in certain magnitude of income drives how much change in magnitude of consumption and so on. Also, talk about some practical implications of the model.
Answer: