MTH 710 CLO 4 Multiple regression and Time
Series Example Pal real Estate Company | Latest
2025/2026 Update | Complete Detailed Study Guide
Pal's Real Estate Company are a national chain selling
Homes across the 12 Canadian Provinces. The company
advertises extensively on radio, TV and the internet
emphasizing best prices, easy mortgage terms and
excellent customer service. The owner Professor Pal
was studying the relationship between sales of homes
and the amount spent on advertising. Listed below is
the following information on sales and advertising
expenses for the last four months:
Month Advertising Sales revenue ($
Expense in ($ million)
million)
July 2 7
August 1 3
September 3 8
October 4 10
,(a)The owner wants to forecast sales based on
advertising expense, Which variable is
independent variable, and which is dependent
variable?
(b) Draw a scatter diagram?
(c) Determine regression equation? Write out the
general definition of the equation of the regression
line. (d) Estimate sales when $3 million is spent on
advertising? Estimate sales when $7 million is spent
on advertising?
(e) Determine the standard error of the estimate. What
does it mean?
(f) The regression was found in step part C and
standard error of the estimate was found in part e. Both
variables are reported in millions of dollars, Determine
the 90% confidence interval for the typical month in
which $3 million was spent on advertising.
(g) Determine the correlation coefficient. What does it
mean to you?
(h) Interpret the correlation coefficient. What does it
mean to you?
(i) Determine the coefficient of determination. What
does it mean to you?
(j) After you have completed your analysis by hand
conduct this whole experience using Excel and create an
ANOVA table using Excel.
(k) Note now how this is single dependent variable
linear regression equation now compare it to the notes
on your multiple regression.
, (1) Now let us study Professor Joshua Emmanuel
Multiple regression model on house sales forPal's Real
Estate Company based on House Size in square feet,
Number of bedrooms, Age in years ofthe House and The
Distance of the House from the city core in miles for a
specific city thatPal's Real Estate Company sells in the
link below.
Multiple Regression I Coefficients - Interpretation, Col, Hypothesis Testing
https://www.youtube.com/watch?v=xj e7M7YS6w
(k) Lastly use the Times Series Forecasting notes to complete
task of analysis.
MT H -l ( O Pal's Real Esa+e (.øyu.pqny Reyession Amlysis
CLo inde.eenaevff odvefh'sjaö expense C
variable
VhL detendgse le {6 Sales revenl.c
Series Example Pal real Estate Company | Latest
2025/2026 Update | Complete Detailed Study Guide
Pal's Real Estate Company are a national chain selling
Homes across the 12 Canadian Provinces. The company
advertises extensively on radio, TV and the internet
emphasizing best prices, easy mortgage terms and
excellent customer service. The owner Professor Pal
was studying the relationship between sales of homes
and the amount spent on advertising. Listed below is
the following information on sales and advertising
expenses for the last four months:
Month Advertising Sales revenue ($
Expense in ($ million)
million)
July 2 7
August 1 3
September 3 8
October 4 10
,(a)The owner wants to forecast sales based on
advertising expense, Which variable is
independent variable, and which is dependent
variable?
(b) Draw a scatter diagram?
(c) Determine regression equation? Write out the
general definition of the equation of the regression
line. (d) Estimate sales when $3 million is spent on
advertising? Estimate sales when $7 million is spent
on advertising?
(e) Determine the standard error of the estimate. What
does it mean?
(f) The regression was found in step part C and
standard error of the estimate was found in part e. Both
variables are reported in millions of dollars, Determine
the 90% confidence interval for the typical month in
which $3 million was spent on advertising.
(g) Determine the correlation coefficient. What does it
mean to you?
(h) Interpret the correlation coefficient. What does it
mean to you?
(i) Determine the coefficient of determination. What
does it mean to you?
(j) After you have completed your analysis by hand
conduct this whole experience using Excel and create an
ANOVA table using Excel.
(k) Note now how this is single dependent variable
linear regression equation now compare it to the notes
on your multiple regression.
, (1) Now let us study Professor Joshua Emmanuel
Multiple regression model on house sales forPal's Real
Estate Company based on House Size in square feet,
Number of bedrooms, Age in years ofthe House and The
Distance of the House from the city core in miles for a
specific city thatPal's Real Estate Company sells in the
link below.
Multiple Regression I Coefficients - Interpretation, Col, Hypothesis Testing
https://www.youtube.com/watch?v=xj e7M7YS6w
(k) Lastly use the Times Series Forecasting notes to complete
task of analysis.
MT H -l ( O Pal's Real Esa+e (.øyu.pqny Reyession Amlysis
CLo inde.eenaevff odvefh'sjaö expense C
variable
VhL detendgse le {6 Sales revenl.c
