This assignment requires you to use Excel. There is no template for this assignment. Make sure you

explain your answers and provide the regression output tables for questions 1 and 2.

Question 1

Shown below are rental and leasing revenue figures for office machinery and equipment in the United States over a seven-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.

.

Year Rental and Leasing ($ millions)

2004    5,860

2005    6,632

2006    7,125

2007    6,000

2008    4,380

2009    3,326

2010    2,642

Question 2

Suppose a researcher gathered survey data from 19 employees and asked the employees to rate

their job satisfaction on a scale from 0 to 100 (with 100 being perfectly satisfied). Suppose the

following data represent the results of this survey.

Assume that relationship with supervisor is rated on a scale from 0 to 50 (0 represents poor relationship and 50 represents an excellent relationship), overall quality of the work environment is rated on a scale from 0 to 100 (0 represents poor work environment and 100 rep resents an excellent work environment), and opportunities for advancement is rated on a scale from 0 to 50 (0 represents no opportunities and 50 represents excellent opportunities).

Answer the following questions:

A) What is the regression formula?

B) How reliable do you think the estimates will be based on this formula? How can you tell?

C) Are there any variables that do not appear to be good predictors of Job satisfaction? How can

you tell?