Assignment 3: Multiple Regression Analysis
You have been assigned the task of creating a multiple regression equation of at least three variables that explains Microsoft’s annual sales.
Consider using a time series of data of at least 10 years. You can search for this data using the Internet.
- Before running the regression, predict what sign each variable will be and explain why you make that prediction.
- After running the regression, interpret the regression.
- Does the regression fit the data well?
- Does each predictor play a significant role in explaining the significance of the regression?
- Are some predictors not useful?
- If so, did you consider removing those and rerunning the regression?
- Are the predictors related too significantly to one another?
Submit your answers in a three- to four-page Microsoft Word document.