Elucidate the interpretation of the output created by most statistical packages (EXCEL) when linear regressions are run on a set of data.
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
The following data shows total sales volume for organic milk, price per gallon, and average household income.
Year

Qd (sales in million gallon)

Price per gallon ($)

Household income ($)

1999

1200

4

35,000

2000

1300

3.9

36000

2001

1320

4

37000

2002

1340

3

38000

2003

1310

3

34000

2004

1400

2.6

40000

2005

1390

2.5

40000

2006

1420

2

42000

2007

1410

2

40000

2008

1430

1.8

48000

Use Microsoft Excel to run a regression analysis for the following data. In Excel, first you need to type above data into your Excel spreadsheet. Then go to "tools", to "Data Analysis", to "Regression." Input sales data into"Input Y range" and price and income data into "Input X range." Mark "output range" and specify a worksheet location you want to place the output.