Posted by Tony on .
Shown below are rental and leasing revenue figures for office machinery and equipment in the United States over a sever-year period according to the U.S. Census Bureau. Use these data to run a linear regression and then forecast the rental and leasing revenue for the year 2012.
Just go to your favorite regression calculator, and if y(x) is the line estimating x years after 2004,
y = 7174.75 - 678.964x
So, for 2012,
y(8) = -972.77
It's not likely that we will get a negative value, and indeed we see that since the data rise and then fall, a linear model isn't very good in this case.
So for 2012,
y (8) = -972.77