Answered: Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14…

Business

Operations Management

Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 New Accounts 208 215 210 230 237 232 248 250 253 267 280 275 292 308

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 17DRQ: Under what conditions might a firm use multiple forecasting methods?

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Question

Obtain the linear trend equation (first, plot the data and the regression line on the same graph, or alternatively use Data Analysis tool to obtain the “a” and the “b” values of the equation) for the following data on new checking accounts for Fair Savings Bank and use it to predict expected new checking accounts for periods 15 through 20. Enter the data on Excel using Period (X) as Column 1 and New Accounts (Y) in the second column. B. Determine the correlation coefficient and interpret it. C. What percentage of variation in new accounts is explained by the independent variable (time)?