Demand for stereo headphones and MP3 players for joggers has caused Nina Industr

Question

Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joppers from woaring them. Demand for the players for last year was as follows: 4,120 4,220 3,920 March 4920 4,620 5,220 ,820 ,320 5,620 6,220 5,920 July a. Using Inear regression analysis, what would you estimate demand to be for each month next yoar? Using Round your answers to 2 decimal places) a spreadsheet, follow the general format in Exhibilt 3.Z (Do not round intermediate calculations March Apri May June July August October

Explanation / Answer

Answer: a

The linear regression can be used for forecasting the demand for next year based on the data of the current year.

For demand forecasting, we need to calculate the intercept and slope from the data of the current year, so that this we can use for calculating the forecasting for next year, as the slope and intercept will remains be the same. In fact linear regression use to provide the intercept and slop only for forecasting process.

We have calculate intercept and slope as below and teh forecatsing for all of teh month as in the below table.

Month Month Demand Forecasted Demand Intercept 3686.67 1 Jan 4120 3879 Slope 192.31 2 Feb 4220 4071 3 Mar 3920 4264 4 Apr 4320 4456 5 May 4920 4648 6 Jun 4620 4841 7 Jul 5220 5033 8 Aug 4820 5225 9 Sep 5320 5417 10 Oct 5620 5610 11 Nov 6220 5802 12 Dec 5920 5994 13 Jan 6187 14 Feb 6379 15 Mar 6571 16 Apr 6764 17 May 6956 18 Jun 7148 19 Jul 7341 20 Aug 7533 21 Sep 7725 22 Oct 7917 23 Nov 8110 24 Dec 8302

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