A manufacturer is developing a facility plan to provide production capacity for its factory. The amount of capacity required in the future depends on the number of products demanded by its customers. The data below reflect past sales of its products: Year Annual Sales (number of products) Year Annual Sales (number of products) 1 490 5 461 2 487 6 475 3 492 7 472 4 478 8 458 Use simple linear regression to forecast annual demand for the products for each of the next three (3) years, by using the tabular method to: derive the values for the intercept and slope
A manufacturer is developing a facility plan to provide production capacity for its factory. The amount of capacity required in the future depends on the number of products demanded by its customers. The data below reflect past sales of its products: Year Annual Sales (number of products) Year Annual Sales (number of products) 1 490 5 461 2 487 6 475 3 492 7 472 4 478 8 458 Use simple linear regression to forecast annual demand for the products for each of the next three (3) years, by using the tabular method to: derive the values for the intercept and slope
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 1E
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Question
A manufacturer is developing a facility plan to provide production capacity for its factory. The amount of capacity required in the future depends on the number of products demanded by its customers. The data below reflect past sales of its products:
Year |
Annual Sales (number of products) |
Year |
Annual Sales (number of products) |
1 |
490 |
5 |
461 |
2 |
487 |
6 |
475 |
3 |
492 |
7 |
472 |
4 |
478 |
8 |
458 |
Use simple linear regression to
-
- derive the values for the intercept and slope
- derive the linear equation
- plot the linear regression line
- develop a forecast for the firm’s annual sales for each of the next three years
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