a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round Intermedlate calculations. Round your answers to 2 decimal places.) Month Forecast January February March April May June July August September October November December

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Problem 3-14 (Algo)
Demand for stereo headphones and music 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 joggers from wearing them. Demand for the players for this year was as follows:
MONTH
DEMAND (UNITS)
4,150
4,25e
3,950
4, 350
4,95e
4,650
5,25e
4,850
5,35e
5,65e
6,25e
5,95e
January
February
March
Аpril
Мay
June
July
August
September
October
November
December
a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the
general format in Exhibit 3.8. (Do not round Intermedlate calculatlons. Round your answers to 2 decimal places.)
Month
Forecast
January
February
March
April
May
June
July
August
September
October
November
December
b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional
units should be held to meet this level of confidence? (Do not round Intermedlate calculatlons. Round your answer to the nearest
whole number.)
Additional units
Transcribed Image Text:Problem 3-14 (Algo) Demand for stereo headphones and music 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 joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) 4,150 4,25e 3,950 4, 350 4,95e 4,650 5,25e 4,850 5,35e 5,65e 6,25e 5,95e January February March Аpril Мay June July August September October November December a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round Intermedlate calculatlons. Round your answers to 2 decimal places.) Month Forecast January February March April May June July August September October November December b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round Intermedlate calculatlons. Round your answer to the nearest whole number.) Additional units
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