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You have been assigned the task of creating a multiple regression equation of at least three variables that explains Microsoft’s annual


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You have been assigned the task of creating a multiple regression equation of at least three variables that explains Microsoft’s annual sales. Use a time series of at least three variables that explains Microsoft’s annual sales.

Before running the regression analysis, predict what sign each variable will be and explain why you made that prediction. Run three simple linear regressions by considering one independent variable at a time. After running each of the three linear regressions, interpret the regression. Does the regression fit the data well? Run a multiple regression using all three independent variables. Interpret the multiple regression.

Does the regression fit the data well? Does each predictor play a significant role in explaining the significance of the regression? Are some predictors not useful? If so, did you consider removing those and rerunning the regression? Are the predictors related too significantly to one another? What is the coefficient of correlation “r”?. Do you think this “r” value suggests a strong correlation among the predictors (the independent variables?)

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