A grocery manager has data concerning their sales of fresh produce over a 20 year period. The manger plugs their data into excel and without plotting comes up with the equation for the regression line. Using this equation they estimate the produce sales for the upcoming year. What mistakes did they make? Explain.

Question

Micah Chaney

Business

18 September, 00:41

A grocery manager has data concerning their sales of fresh produce over a 20 year period. The manger plugs their data into excel and without plotting comes up with the equation for the regression line. Using this equation they estimate the produce sales for the upcoming year. What mistakes did they make? Explain.

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Answers (1)

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Nicole · Answer 1

Answer and Explanation:

plotting the data gives a better insigt of the data than a regression line. in this case, the relationship might be exponential and fitting a linear regression line will underestimate the produce and the model is being used for prediction for the upcoming year, that is Extrapolation but the regression model is only valid for interpolation.