In: Statistics and Probability
#2) Running Regression
Here’s a small dataset:
Year |
Price of Bread |
1940 |
$0.10 |
1950 |
$0.12 |
1960 |
$0.23 |
1970 |
$0.25 |
1980 |
$0.50 |
1990 |
$0.75 |
2000 |
$1.99 |
2010 |
$2.99 |
a) Using Linear Regression on a TI or Excel, find the coefficients for:
price=a+b*year
b) What are your r and r-squared values? What does this tell you?
c) What does the t-stat for your b value above tell you about the model?
d) Predict the price in 2020.