Can you please help me with this HW question?
Use the charting tool in Excel to develop a regression model to fit the trend effects using the data below for this scenario.
The "Economic Report to the President of the United States" included data on the amounts of manufacturers' new and unfilled orders in millions of dollars. Shown here are the figures for new orders over a 21-year period:
Year
Total Number of New Orders
1 55,022
2 55,921
3 64,182
4 76,003
5 87,327
6 85,139
7 99,513
8 115,109
9 116,251
10 121,547
11 123,321
12 141,200
13 162,140
14 168,420
15 171,250
16 176,355
17 195,204
18 209,389
19 237,025
20 272,544
21 293,475
What is required is first a linear model (chart) and then a polynomial (order 2) model (chart) using the above data, and each chart must show the line formula and the r-squared value.
The charts then should be used to answer the following questions:
How well does either model fit the data?
Which model should be used for forecasting?
And provide explanations using the relevant metrics.