Question 09

a) Regression
Source | SS df MS Number of obs = 32

-------------+------------------------------ F( 3, 28) = 0.18

Model | 31903.3438 3 10634.4479 Prob > F = 0.9116

Residual | 1689874.88 28 60352.6741 R-squared = 0.0185

-------------+------------------------------ Adj R-squared = -0.0866

Total | 1721778.22 31 55541.2329 Root MSE = 245.67

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tv | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

d2 | 18.375 122.8339 0.15 0.882 -233.2389 269.9889

d3 | 34.625 122.8339 0.28 0.780 -216.9889 286.2389

d4 | 84.875 122.8339 0.69 0.495 -166.7389 336.4889

_cons | 1320.375 86.85669 15.20 0.000 1142.457 1498.293

Interpretation of Intercept
The estimated value of intercept is 1320.375. This value suggest that television in the first
quarter of the year is approximately $1320.375. The positive amount of television makes logical
sense.
Interpretation of D2 Coefficient
The estimated value of D2 Coefficient is 18.375.this value suggest that the television in the
second quarter of the year is approximately $18.375. It makes logical sense.
Interpretation of D3 Coefficient
The estimated value of D3 coefficient is 34.625. This value implies that the television in the third
quarter of the year is approximately $34.625.this positive value indicates that it has positive
relation and it makes logical sense.
Interpretation of D4 Coefficient
The estimated value of D4 coefficient is 84.875. This value implies that the television in the
fourth quarter of the year is approximately $84.875. This positive value indicates that it has
positive relation and it makes logical sense.
Regression

Source | SS df MS Number of obs = 32

-------------+------------------------------ F( 3, 28) = 0.15

Model | 704.371356 3 234.790452 Prob > F = 0.9295

Residual | 44131.8489 28 1576.13746 R-squared = 0.0157

-------------+------------------------------ Adj R-squared = -0.0897

Total | 44836.2203 31 1446.32969 Root MSE = 39.701

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wm | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

d2 | 4.5 19.8503 0.23 0.822 -36.16149 45.16149

d3 | 7.35 19.8503 0.37 0.714 -33.31149 48.01149

d4 | 12.9375 19.8503 0.65 0.520 -27.72399 53.599

_cons | 274.3875 14.03628 19.55 0.000 245.6355 303.1395

Interpretation of Intercept
The estimated value of intercept is 274.3875. This value suggest that washing machine in the
first quarter of the year is approximately $274.3875. The positive amount of television makes
logical sense.
Interpretation of D2 Coefficient
The estimated value of D2 Coefficient is 4.5.this value suggest that the washing machine in the
second quarter of the year is approximately $4.5. It makes logical sense.
Interpretation of D3 Coefficient
The estimated value of D3 coefficient is 7.35. This value implies that the washing machine in the
third quarter of the year is approximately $7.35. This positive value indicates that it has positive
relation and it makes logical sense.
Interpretation of D4 Coefficient
The estimated value of D4 coefficient is 12.9375. This value implies that the washing machine in
the fourth quarter of the year is approximately $12.9375. This positive value indicates that it has
positive relation and it makes logical sense.
b) Regression

Source | SS df MS Number of obs = 32

-------------+------------------------------ F( 4, 28) = 243.45

Model | 58771154.1 4 14692788.5 Prob > F = 0.0000

Residual | 1689874.88 28 60352.6741 R-squared = 0.9721

-------------+------------------------------ Adj R-squared = 0.9681

Total | 60461029 32 1889407.16 Root MSE = 245.67

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tv | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

d1 | 1320.375 86.85669 15.20 0.000 1142.457 1498.293

d2 | 1338.75 86.85669 15.41 0.000 1160.832 1516.668

d3 | 1355 86.85669 15.60 0.000 1177.082 1532.918

d4 | 1405.25 86.85669 16.18 0.000 1227.332 1583.168

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Interpretation of D1 Coefficient
The estimated value of D1 coefficient is 1320.375. This value suggest that television in the first
quarter of the year is approximately $1320.375. The positive amount of television makes logical
sense.
Interpretation of D2 Coefficient
The estimated value of D2 Coefficient is 1338.75.this value suggest that the television in the
second quarter of the year is approximately $1338.75. It makes logical sense.
Interpretation of D3 Coefficient
The estimated value of D3 coefficient is 1355. This value implies that the television in the third
quarter of the year is approximately $1355.this positive value indicates that it has positive
relation and it makes logical sense.
Interpretation of D4 Coefficient
The estimated value of D4 coefficient is 1405.25. This value implies that the television in the
fourth quarter of the year is approximately $1405.25. This positive value indicates that it has
positive relation and it makes logical sense.

Regression

Source | SS df MS Number of obs = 32

-------------+------------------------------ F( 4, 28) = 399.71

Model | 2519987.26 4 629996.816 Prob > F = 0.0000

Residual | 44131.8489 28 1576.13746 R-squared = 0.9828

-------------+------------------------------ Adj R-squared = 0.9803

Total | 2564119.11 32 80128.7223 Root MSE = 39.701

------------------------------------------------------------------------------

wm | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

d1 | 274.3875 14.03628 19.55 0.000 245.6355 303.1395

d2 | 278.8875 14.03628 19.87 0.000 250.1355 307.6395

d3 | 281.7375 14.03628 20.07 0.000 252.9855 310.4895

d4 | 287.325 14.03628 20.47 0.000 258.573 316.077

Interpretation of D1 Coefficient
The estimated value of D1 coefficient is 274.3875. This value suggest that washing machine in
the first quarter of the year is approximately $274.3875. The positive amount of television makes
logical sense.
Interpretation of D2 Coefficient
The estimated value of D2 Coefficient is 278.8875.this value suggest that the washing machine
in the second quarter of the year is approximately $278.8875. It makes logical sense.
Interpretation of D3 Coefficient
The estimated value of D3 coefficient is 281.7375. This value implies that the washing machine
in the third quarter of the year is approximately $281.7375.this positive value indicates that it has
positive relation and it makes logical sense.
Interpretation of D4 Coefficient
The estimated value of D4 coefficient is 287.325. This value implies that the washing machine in
the fourth quarter of the year is approximately $287.325. This positive value indicates that it has
positive relation and it makes logical sense.

c) Regression

Source | SS df MS Number of obs = 32

-------------+------------------------------ F( 3, 28) = 0.18

Model | 31903.3438 3 10634.4479 Prob > F = 0.9116

Residual | 1689874.88 28 60352.6741 R-squared = 0.0185

-------------+------------------------------ Adj R-squared = -0.0866

Total | 1721778.22 31 55541.2329 Root MSE = 245.67

------------------------------------------------------------------------------

tv | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

d2 | 18.375 122.8339 0.15 0.882 -233.2389 269.9889

d3 | 34.625 122.8339 0.28 0.780 -216.9889 286.2389

d4 | 84.875 122.8339 0.69 0.495 -166.7389 336.4889

_cons | 1320.375 86.85669 15.20 0.000 1142.457 1498.293

Interpretation of Intercept
The estimated value of intercept is 1320.375. This value suggest that television in the first
quarter of the year is approximately $1320.375. The positive amount of television makes logical
sense.
Interpretation of D2 Coefficient
The estimated value of D2 Coefficient is 18.375.this value suggest that the television in the
second quarter of the year is approximately $18.375. It makes logical sense.
Interpretation of D3 Coefficient
The estimated value of D3 coefficient is 34.625. This value implies that the television in the third
quarter of the year is approximately $34.625. This positive value indicates that it has positive
relation and it makes logical sense.
Interpretation of D4 Coefficient
The estimated value of D4 coefficient is 84.875. This value implies that the television in the
fourth quarter of the year is approximately $84.875. This positive value indicates that it has
positive relation and it makes logical sense.

Regression

Source | SS df MS Number of obs = 32

-------------+------------------------------ F( 3, 28) = 0.15

Model | 704.371356 3 234.790452 Prob > F = 0.9295

Residual | 44131.8489 28 1576.13746 R-squared = 0.0157

-------------+------------------------------ Adj R-squared = -0.0897

Total | 44836.2203 31 1446.32969 Root MSE = 39.701

------------------------------------------------------------------------------

wm | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

d2 | 4.5 19.8503 0.23 0.822 -36.16149 45.16149

d3 | 7.35 19.8503 0.37 0.714 -33.31149 48.01149

d4 | 12.9375 19.8503 0.65 0.520 -27.72399 53.599

_cons | 274.3875 14.03628 19.55 0.000 245.6355 303.1395

Interpretation of Intercept
The estimated value of intercept is 274.3875. This value suggest that washing machine in the
first quarter of the year is approximately $274.3875. The positive amount of television makes
logical sense.
Interpretation of D2 Coefficient
The estimated value of D2 Coefficient is 4.5.this value suggest that the washing machine in the
second quarter of the year is approximately $4.5. It makes logical sense.
Interpretation of D3 Coefficient
The estimated value of D3 coefficient is 7.35. This value implies that the washing machine in the
third quarter of the year is approximately $7.35. This positive value indicates that it has positive
relation and it makes logical sense.
Interpretation of D4 Coefficient
The estimated value of D4 coefficient is 12.3875. This value implies that the washing machine in
the fourth quarter of the year is approximately $12.3875. This positive value indicates that it has
positive relation and it makes logical sense.

Step 1
Predict u, residuals
Step 2
Summarize TV

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------

tv | 32 1354.844 235.6719 919 1764

Summarize WM

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------

wm | 32 280.5844 38.03064 231.9 369.1

Step 3