A financial planner tracks the number of new customers added each quarter for a
ID: 3244596 • Letter: A
Question
A financial planner tracks the number of new customers added each quarter for a 6 year period. The data is presented below:
Create a simple linear trend regression model. Let t=0 in 2010: IV. This is a computer deliverable. (15 pts)
(a) Interpret the slope coefficient. (4 pts)
(b) Test to see if the number of new customers is increasing over time. Use alpha = 0.01. (15 pts)
(c) Test to see if the model has explanatory power. Use alpha = 0.05. (15 pts)
(d) Forecast the number of new customers in the first and second quarters of 2017. (4 pts each)
Year Quarter New Year Quarter New 2011 I 31 2014 I 69 II 24 II 54 III 23 III 46 IV 16 IV 32 2012 I 42 2015 I 82 II 35 II 66 III 30 III 51 IV 23 IV 38 2013 I 53 2016 I 91 II 45 II 72 III 39 III 59 IV 27 IV 41Explanation / Answer
a) for every quareter there has been increase in 1.8227 customers
b)
since p-value of b1 is 0.000555
which is less than 0.01
hence
he number of new customers is increasing over time
c) since signicance of F is 0.000555
which is less than 0.05 ,the model is significant
d) first and second quarters of 2017
x = 25 and 26 respectively
y^ = 22.59783 +1.822174*x^
for first quarter =22.59783 +1.822174*25 = 68.15218
for second quarte 22.59783 +1.822174*26 = 69.974354
SUMMARY OUTPUT Regression Statistics Multiple R 0.652093 R Square 0.425225 Adjusted R Square 0.399099 Standard Error 15.31675 Observations 24 ANOVA df SS MS F Significance F Regression 1 3818.365 3818.365 16.27588 0.000555 Residual 22 5161.26 234.6027 Total 23 8979.625 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 22.59783 6.453718 3.50152 0.002017 9.213633 35.98202 9.213633 35.98202 X Variable 1 1.822174 0.451666 4.034338 0.000555 0.885476 2.758872 0.885476 2.758872Related Questions
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