Question

Date Company 1 Company 2 Company 3 Jan-19 107 111 102 Feb-19 105 124 112 Mar-19 113 102 121 Apr-19 121 102 116 May-19 120 120 125 Jun-19 123 107 125 Jul-19 120 122 120 Aug-19 112 100 109 Sep-19 106 108 121 Oct-19 100 113 122 Nov-19 124 122 100 Dec-19 101 110 102 Jan-20 95 75 74 Feb-20 90 71 70 Mar-20 101 51 73 Apr-20 101 64 73 1)

1.Perform a regression analysis and determine what is the expected ouput for Company 1 in May-20 2)?

Perform an ANOVA to determine if the means are significantly different from each other or not. Set up Hypothesis and state whether you accept or reject it.

Answer 1

Solution :

a)

the expected output for company 1 in may-20 = 98.4

Explanation:

The regression equation is defined as,

where the dependent variable Y = expected output for company 1 and the independent variable, X = Date

Now, the regression analysis is done in excel by following steps

Step 1:

Write the data values in excel. The screenshot is shown below,

Step 2:

DATA > Data Analysis > Regression > OK. The screenshot is shown below,

Step 3:

Select Input Y Range: 'Company 1' column, Input X Range: 'Date' column then OK. The screenshot is shown below,

The result is obtained. The screenshot is shown below,

The regression equation is,

Prediction

For may-20, X = 17

b)

The one way ANOVA analysis is performed in excel by following these steps,

Step 1:

Write the data values in excel. The screenshot is shown below

Step 2:

DATA > Data Analysis > ANOVA: Single Factor > OK.  The screenshot is shown below,

Step 3:

Select Input Range: All the data values column. The screenshot is shown below,

The result is obtained.  The screenshot is shown below,

Hypothesis

Null Hypothesis: The mean expected outputs are equal,  

Alternative Hypothesis: At least one mean expected output differs significantly.

Let the significance level = 0.05

Test statistic and P-value

From the ANOVA table,

F-statistic = 0.8487

P-value = 0.4347

Decision

Since the p-value is greater than 0.05 at a 5% significance level, the null hypothesis is failed to reject.

Conclusion

There is not sufficient evidence to conclude that the mean expected output differs significantly.

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