QUANTITIVE REASONING AND ANALYSIS

Running head: QUANTITIVE REASONING AND ANALYSIS
Quantitive Reasoning and Analysis
Name of the Student
Name of the University
Course ID

QUANTITIVE REASONING AND ANALYSIS1
Table of Contents
Section one: Time Series.................................................................................................................2
Question 1.1.................................................................................................................................2
Question 1.2.................................................................................................................................2
Question 1.3.................................................................................................................................3
Question 1.4.................................................................................................................................4
Question 1.5.................................................................................................................................5
Section two: Simple Linear Regression...........................................................................................6
Question 2.1.................................................................................................................................6
Question 2.2.................................................................................................................................7
Question 2.3.................................................................................................................................7
Question 2.4.....................................................................................................................................9
Question 2.5.....................................................................................................................................9
Section 3: Hypothesis and test.......................................................................................................10
Question 3.1...............................................................................................................................10
Question 3.2...............................................................................................................................13
References......................................................................................................................................16

QUANTITIVE REASONING AND ANALYSIS2
Section one: Time Series
Question 1.1
Table 1: Simple time series index for craft butter production (2004 base)
Value of the index in 2015 is 420.58. The index suggests the production of craft beer in
2015 is almost 420.58 percent of the production in 2004.
Question 1.2
The index in part a, in constructed using the quantity of craft beer production in different
years taking 2004 as the base year. Since, the index number is based on quantity of production of
craft beer, this is an example of quantity index.

QUANTITIVE REASONING AND ANALYSIS3
Question 1.3
Table 2: Simple time series index for craft butter production (2010 base)
Figure 1: Trend in two index of Craft Beer Production
From the above graph, it is obtained that quantity index is higher when 2004 is taken as
base period compared to when the base period is taken as 2010. This means production has
increased much compared to the production level in 2004 compared to that in 2010.