Statistical Analysis

Assignment-1

Question-1: Listed below is the net sales in $ million for home Depot, Inc. and its subsidiaries from 1997 to 2006. Table 1: Net sales of different years
|Year |Net Sales ($) |Year |Net Sales ($) |
|1997 |50,600 |2002 | 156,700 |
|1998 |67,300 |2003 |201,400 |
|1999 |80,800 |2004 |227,300 |
|2000 |98,100 |2005 |256,300 |
|2001 |124,400 |2006 |280,900 |

Note: Add last three digits of your ID with Net Sales

i) Determine the least square equation. On the basis of this information, what are the estimated sales for 2010? ii) Plot Net Sales and Trend Line

Answer

Using Excel we get,

|Year |Net sales($) |Time, t |ID(207)+Net sales($) |Y= a+bt |
|1997 |50600 |1 |50807 |32666.7 |
|1998 |67300 |2 |67507 |59759.7 |
|1999 |80800 |3 |81007 |86852.7 |
|2000 |98100 |4 |98307 |113945.7 |
|2001 |124400 |5 |124607 |141038.7 |
|2002 |156700 |6 |156907 |168131.7 |
|2003 |201400 |7 |201607 |195224.7