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Unformatted text preview: Why or why not? 4 + 2(3.6) to 4 2(3.6) 11.2 to-3.2 No, I cannot conclude that income is an important explainor of sales. The interval includes 0. 3. Assume your answer to 2 was no. Should you eliminate the income variable from your regression? No. Eliminating relevant variables can create bias. 4. Using current values a) forecast sales for the next month. Q = 125 - 14(3.5) + 5(5) + 4(12) = 125 49 + 25 + 48 = 149 b) Provide an approximate 95% confidence band about your projection. 149 + 2(2.75) to 149 2(2.75) 154.5 to 143.5 c) What would tend to make you less confident of your projection? Why? Factors that make the future look different from the past, such as - Independent variable values that deviate from their means- Some probability of a change in the underlying legal or social environment These factors are not included in the estimates...
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This note was uploaded on 04/12/2010 for the course ECON 303 taught by Professor Shrestha during the Fall '08 term at VCU.
- Fall '08