mba 522 12 Interval prediction in Excel

mba 522 12 Interval prediction in Excel - Confidence Level...

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Question from student in the other section: Does Excel show the 95% prediction interval somewhere on its' output? Do we have to calculate it by hand? Dr. J.'s Response For Excel to compute the confidence and prediction intervals discussed in chapter 12, we must be able to specify the Xp. However, if you have noticed, when using Excel's regression function, it does not ask us what Xp we want to use. Therefore, Excel does not compute (does not report) the intervals that were discussed in ch. 12. If it does not do it for simple regression, it does not do it for multiple regression either. Other software (such as Minitab) have the capabiltiy for the user to specify an Xp, and a
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Unformatted text preview: Confidence Level, and the software would calculate the confidence and the prediction intervals. When you run Excel, you will see that it computes "some" intervals. But those are for other terms, such as for the various coefficients like bo, b1, b2, etc. .... But, Excel does NOT report those 2 specific intervals that chapter 12 discussed. In chapter 12, we can compute them by hand since the formulas are given to you. But in chapter 13, we won't emphasize those intervals due to limitations that exist in Excel. Dr. J....
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This note was uploaded on 11/13/2011 for the course MBA 522 taught by Professor Nabavi during the Spring '08 term at Bellevue.

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