10-Piece 10-Piece

month year Set sold Set sale

Time in
units month price SUMMARY OUTPUT
Jan-11 219 1 $949.98
Feb-11 175 2 $949.98 Regression Statistics
Mar-11 306 3 $949.98 Multiple R
Apr-11 394 4 $949.98 R Square
May-11 394 5 $949.98 Adjusted R Square
Jun-11 131 6 $949.98 Standard Error
Jul-11 131 7 $949.98 Observations
Aug-11 438 8 $949.98
Sep-11 525 9 $949.98 ANOVA
Oct-11 613 10 $949.98
Nov-11 657 11 $949.98 Regression
Dec-11 394 12 $949.98 Residual
Jan-12 354 13 $949.98 Total
Feb-12 706 14 $949.98
Mar-12 603 15 $949.98
Apr-12 603 16 $949.98 Intercept
May-12 367 17 $949.98 Time in month
Jun-12 328 18 $949.98 10-Piece Set sale price
Jul-12 509 19 $949.98
Aug-12 429 20 $949.98
Sep-12 417 21 $949.98
Oct-12 1,553 22 $799.95 RESIDUAL OUTPUT
Nov-12 1,670 23 $799.95
Dec-12 1,204 24 $799.95 Observation
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
 Time in month Residual Plot
300
200
Regression Statistics 100

Residuals
0
0.919491963615066
-100 0 5 10 15 20
0.84546547115269 -200
0.830747896976756 -300
163.561952576589 -400
24 Time in month

df SS MS F Significance F
2 3073648.574389 1536824.2872 57.445979959 3.0532902E-09
21 561802.758944 26752.512331
23 3635451.333333

Coefficients Standard Error t Stat P-value Lower 95%

6076.63346782901 809.9020146634 7.5029242523 2.267159E-07 4392.35002526
12.1865284974093 5.886723484392 2.0701717228 0.0509570933 -0.0555831608
-6.10195256778894 0.82125834077 -7.43000377 2.637621E-07 -7.8098527834

Time in month Lin

1,800
1,600
Predicted 10-Piece Set sold units Residuals
1,400
292.087095978286 -73.0870959783
10-Piece Set sold units

304.273624475695 -129.273624476 1,200

316.460152973104 -10.4601529731 1,000
328.646681470514 65.35331852949 800
340.833209967924 53.16679003208
600
353.019738465333 -222.019738465
365.206266962742 -234.206266963 400
377.392795460151 60.60720453985 200
389.57932395756 135.4206760424 0
401.76585245497 211.234147545 0 5 10 15
413.95238095238 243.0476190476 Time in mo
426.138909449789 -32.1389094498
438.325437947198 -84.3254379472
10-Piece Set sold units Predicted
450.511966444607 255.4880335554
462.698494942017 140.301505058
474.885023439426 128.1149765606 1,800

1,600

1,400
 1,800
487.071551936835 -120.071551937
1,600
499.258080434245 -171.258080434
511.444608931654 -2.44460893165 1,400
523.631137429064 -94.6311374291
1,200
535.817665926473 -118.817665926
1463.48013816926 89.51986183074 1,000
1475.66666666667 194.3333333333
800
1487.85319516407 -283.853195164
600

400

200

0
0 200 400 600 800 1,00

45 Actual vs
 Residual Plot

15 20 25

e in month

Upper 95% Lower 95.0% Upper 95.0%

7760.9169104 4392.3500253 7760.9169104
24.428640156 -0.0555831608 24.428640156
-4.3940523522 -7.8098527834 -4.3940523522

Time in month Line Fit Plot

5 10 15 20 25 30
Time in month

10-Piece Set sold units Predicted 10-Piece Set sold units

400 600 800 1,000 1,200 1,400 1,600 1,800

45 Actual vs Predicted
Linearity
The Residuals are distributed randomly, therefore, hypothesized linear model is valid.

Independence
There is a clear patter between the residuals i.e. alternating cycling of residuals which means that the residuals are n

Equal Variance
Variability of residuals do not increase as the x (time in months) increases. This means the model is valid.

R-Square Value
The model has R-Square value of 0.845 which means that 84.5% of the variation can be explained by the model.

P-Value

P-Value for both the independent variables (time in months and 10-piece price set) have p-value of less that 5% level of signifi
that Null Hypothesis of no relation between x & y is false. Thus, we reject null hypothesis i.e. there is a linear relation between
means that the residuals are not independent.

el is valid.

ed by the model.

e of less that 5% level of significance which means

ere is a linear relation between x and y.