# submit 1 – 2 typed pages answering B u s i n e s s F i n a n c e

submit 1 – 2 typed pages answering B u s i n e s s F i n a n c e

### Part 1: Regression Analysis Experiments

Using the data provided in the Unit 4: Business Analytics Excel document (linked in Resources), run a series of regression analysis experiments. First, run a simple regression test against the data using the analytical or statistical software tool of your choice. Submit 1–2 typed pages answering the following questions:

• Which variable is the dependent?
• Which variable is the independent?
• How strong is the relationship between the variables?
• What are the best values of the intercept and slope relating to the data?
##### Part 2: Estimated Values and Actual Values

The last question in Part 1 is used to define best fit, which your software should recommend based on the evaluation of the data to create the line. It is up to you to provide reasonable definitions and values, that is, experiment with changing the estimated values against the actual values contained in the data set. Choosing reasonable values when estimating can cause errors called residuals. To understand the impact on the distance between the estimated valued and actual values, use the method of least squares. Submit 1–2 typed pages answering the following questions:

• What estimates do you use for each observation?
• Why did you use (plug) the estimate value for the observation itself? What was the error? Explain.
• What is the value of the intercept?
• What is the value of the slope?
• Where is the upper boundary? Where is the lower boundary?
• How can this understanding help you predict expected levels in the future?
• What is one example of an unknown that can affect the actual outcome and render the model obsolete, even with the best model and confidence?
• Why is it important to evaluate and adjust analytical models on an ongoing basis?
##### Part 3: Research Paper

Write a 5–8 page research paper using a minimum of 3 references. Citations and references must be formatted using current edition APA style and format. 