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Amazon Polynomial Model

Student’s Name

Institution Affiliation

Course

Instructor

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Amazon Polynomial Model

y = ax2 + bx + c with order (or) degree 2 is a polynomial model, which is a non-linear regression

model in the form of a quadratic equation. The regression coefficients a and b which represents

the regression coefficients of independent variable x and the dependent variable y. The constant

term is c.

The estimated polynomial model is given by y = -0.2766x2 + 30.691x - 189.2

On the basis of their sales, this equation can be used to estimate (or predict) Amazon's net

income.

Process used to determine the Polynomial Model

Step 1: Separate the two sets of data (sales and income) in each column.

Step 2: Decide on a data range (example A1: B19)

Step3: Select recommended chart from the Insert tab [select the XY(scatter) from All charts].

Step 4: Create a suitable scatter plot and add a trend line by clicking on any of the scatter plot's

individual points. Then, with a right click, add a trend line. Choose polynomial and set the order

as needed from the trend line options 

Step5: Next, select the option "Display Equation on chart" from the bottom of the trend line

options to add the polynomial model.

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References

https://www.macrotrends.net/stocks/charts/AMZN/amazon/net-income

https://www.macrotrends.net/stocks/charts/AMZN/amazon/revenue