A Carpet Company, Which Sells and Installs Carpet, Believes That

Essay

A carpet company, which sells and installs carpet, believes that there should be a relationship between the number of carpet installations that they will have to perform in a given month and the number of building permits that have been issued within the county where they are located. Below you will find a regression model that compares the relationship between the number of monthly carpet installations (Y) and the number of building permits that have been issued in a given month (X). The data represents monthly values for the past 10 months.
-(A) Estimate the regression model. How well does this model fit the given data?
​
(B) Yes, there is a linear relationship between the number of carpet installations and the number of building permits issued at a = 0.10; The p-value = 0.0866 for the F-ratio. You can conclude that there is a significant linear relationship between these two variables.
​
(C) The Durbin-Watson statistic for this data was 1.2183. Given this information what would you conclude about the data?
​
(D) Given your answer in (C), would you recommend modifying the original regression model? If so, how would you modify it?