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Correlation and regression and time series analysis - Lab Report Example

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Data on household consumer expenditure in the UK from 2000 to 2008. The data was collected on a quarterly basis and measured in million pound (). All of the data are measured in current prices but are not seasonally adjusted.
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Correlation and regression and time series analysis
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"Correlation and regression and time series analysis"

Data on household consumer expenditure in the UK from 2000 to 2008. The data was collected on a quarterly basis and measured in million pound (). All of the data are measured in current prices but are not seasonally adjusted. By calculating the correlation coefficients, it was found that consumer expenditure on Housing, water, electricity, gas and other fuels have the highest positive correlation (0.948) with Household final consumption expenditure.Thus this high correlation concluded that expenditure on household utilities is the best predictor for the Household final consumption expenditure.In Q4 of 2001, household utilities expenditures was 10490 million and total household expenditures was 168504 million. This indicates the high accuracy of the regression equation to predict in the current example.In Q4 of 2007, household utilities expenditures was 12794 million and total household expenditures was 225495 million. This indicates the high accuracy of the regression equation to predict in the current example.The average annual increase in expenditures on Clothing and footwear is computed to be 2200 £ million. The average annual increase is calcuated as shown in appendix 3. Read More
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