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In: Statistics and Probability

#2) Running Regression                 Here’s a small dataset: Year Price of Bread 1940 $0.10 1950 $0.12...

#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.

               

Solutions

Expert Solution

orchestra answered 3 years ago
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