Question

In: Economics

Year Fall Winter Spring Summer 1995 220 203 193 84 1996 235 208 206 76 1997...

Year

Fall

Winter

Spring

Summer

1995

220

203

193

84

1996

235

208

206

76

1997

236

206

209

73

1998

241

215

206

92

1999

239

221

213

115

Regression Equation: Slope:  

Intercept:  

Equation of the predicted line:   

Solutions

Expert Solution

Solution:-

Given that

The regression has been performed on Microsoft Excel.

Year Y Time Fall Winter Spring Summer
1995 220 1 1 0 0 0
1995 203 1 0 1 0 0
1995 193 1 0 0 1 0
1995 84 1 0 0 0 1
1996 235 2 1 0 0 0
1996 208 2 0 1 0 0
1996 206 2 0 0 1 0
1996 76 2 0 0 0 1
1997 236 3 1 0 0 0
1997 206 3 0 1 0 0
1997 209 3 0 0 1 0
1997 73 3 0 0 0 1
1998 241 4 1 0 0 0
1998 215 4 0 1 0 0
1998 206 4 0 0 1 0
1998 92 4 0 0 0 1
1999 239 5 1 0 0 0
1999 221 5 0 1 0 0
1999 213 5 0 0 1 0
1999 115 5 0 0 0 1

Dummy variables have been created for the different seasons for performing the regressions.

The regression coefficients calculated are as follows:

Coefficients
Intercept 190.025
Time 5.125
Fall 28.8
Winer 5.2
Spring 0
Summer -117.4

Intercept = 190.025

Slope = 5.125 (Regression coefficient of Time)

Equation of predicted line:

Y = 190.025 + 5.125 * (Time) + 28.8 * (Fall) + 5.2 * (Winter) - 117.4 * (Summer)

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