The Organisation for Economic Co-operation and Development collects data on Main

Question

The Organisation for Economic Co-operation and Development collects data on Main Economic Indicators (MEIs) for many countries. Each variable is recorded as an index with the year 2000 serving as a base year. This means that the variable for each year is reported as a ratio of the value for the year divided by the value for 2000. Use of indices in this way makes it easier to compare values for different countries. The following table gives the values of three MEIs for 21 countries:

What is the predicted value of sales for a country that has an index of 160 for dwelling permits?

(Use decimal notation. Give your answer with tolerance =±1

±1.)

Predicted value of sales = .

The country with ID = 15 has an index of 160 for dwelling permits. Find the residual for this country.

Residual is actual value minus predicted value.

(Use decimal notation. Give your answer with tolerance =

±1±1.)

Residual =

Country ID Dwelling permits Sales Production 1 118 141 110 2 128 103 115 3 229 119 103 4 179 137 167 5 120 129 105 6 103 132 127 7 147 125 100 8 54 103 122 9 120 136 103 10 107 144 154 11 96 126 142 12 90 102 112 13 158 113 158 14 144 157 122 15 160 105 110 16 131 136 117 17 122 141 98 18 163 142 164 19 50 108 109 20 118 126 110

Explanation / Answer

Given,

dependent variable(y) is sales

independent variable(x) is dwelling permits

need to find predicted value of sales and residual

the problem can be solved using forecast function in excel

FORECAST(x,y1:yn,x1:xn) or

FORECAST(C16,$D$2:$D$21,$C$2:$C$2)

using the formula we get

therefore the predicted value of sales for dwelling point of 160 is 129.37

and residual value is 105-129.37= -24.37

Country ID Dwelling permits Sales Production Predicted value Residual 1 118 141 110 125.42 15.58 2 128 103 115 126.36 -23.36 3 229 119 103 135.86 -16.86 4 179 137 167 131.16 5.84 5 120 129 105 125.61 3.39 6 103 132 127 124.01 7.99 7 147 125 100 128.15 -3.15 8 54 103 122 119.40 -16.40 9 120 136 103 125.61 10.39 10 107 144 154 124.38 19.62 11 96 126 142 123.35 2.65 12 90 102 112 122.78 -20.78 13 158 113 158 129.18 -16.18 14 144 157 122 127.86 29.14 15 160 105 110 129.37 -24.37 16 131 136 117 126.64 9.36 17 122 141 98 125.79 15.21 18 163 142 164 129.65 12.35 19 50 108 109 119.02 -11.02 20 118 126 110 125.42 0.58

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.