Regression analysis is an extremely valuable quantitative tool. Briefly discuss the following using a real world example:
– How the coefficient of determination and the correlation coefficient are related and how they are used in regression analysis.
– How scatter diagrams can be used to identify the type of regression to use.
– The methods used to determine if the regression model is a good model for the presented dependent and independent variable(s).
No forecasting method is perfect under all conditions. Briefly describe the steps used to develop a forecasting system. What is the difference between a causal model and a time-series model? What is a qualitative forecasting model, and when is it appropriate. Provide a real world example of each type of qualitative forecasting model. (50 points)
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