# Least squares regression in Excel, with future prediction and MSE

**Question description**

1. For the data below:

Year |
Automobile Sales |
Year |
Automobile Sales |

1990 |
116 |
1997 |
119 |

1991 |
105 |
1998 |
34 |

1992 |
29 |
1999 |
34 |

1993 |
59 |
2000 |
48 |

1994 |
108 |
2001 |
53 |

1995 |
94 |
2002 |
65 |

1996 |
27 |
2003 |
111 |

(a) Determine the least squares regression trend line using the Excel output from the Data Analysis tool. (5 pts)

(b) Determine the predicted value for 2004. Use the information from part (a). (5 pts)

(c) Determine the 3 year moving average. (10 pts)

(d) Determine the MSE for the trend line (in a) and the 3 year moving average (in c.) Which forecasting method is better? Explain. (20 pts)

ALL WORK NEEDS TO BE SHOWN

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