Tucson Machinery, Incorporated, manufactures numerically controlled machines, which sell for an average price of $17.0 million each. Sales for these NCMs for the past two years were as follows: Use Exhibit 3.10. QUARTER LAST YEAR QUANTITY (UNITS) 17 23 31 21 QUARTER THIS YEAR 20.536 1 2 QUANTITY (UNITS) 16 29 33 20 a. Find the equation of a simple linear regression line using Excel. Note: Round your answers to 3 decimal places. 0.7141 b. Compute trend and seasonal factor from a linear regression line obtained with Excel. Note: Do not round intermediate calculations. Round your answers to 3 decimal places.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Tucson Machinery, Incorporated, manufactures numerically controlled machines, which sell for an average price of $17.0 million each.
Sales for these NCMS for the past two years were as follows: Use Exhibit 3.10.
QUARTER
LAST YEAR
1
3
4
QUANTITY QUARTER
(UNITS) THIS YEAR
17.
23
31
21
Y =
a. Find the equation of a simple linear regression line using Excel.
Note: Round your answers to 3 decimal places.
Last Year
20.536 +
This Year
b. Compute trend and seasonal factor from a linear regression line obtained with Excel.
Note: Do not round intermediate calculations. Round your answers to 3 decimal places.
Period
1
2
3
4
1
1
2
3
4
2
QUANTITY
(UNITS)
16
29
33
20
3
4
0.714 t
Trend Forecast
0.800
1.047
1.367
0.898
0.664
1.168
1.292
0.762
Seasonal
Factors
0.732
1.108
1.330
0.830
0.732
1.108
1.330
0.830
Transcribed Image Text:Tucson Machinery, Incorporated, manufactures numerically controlled machines, which sell for an average price of $17.0 million each. Sales for these NCMS for the past two years were as follows: Use Exhibit 3.10. QUARTER LAST YEAR 1 3 4 QUANTITY QUARTER (UNITS) THIS YEAR 17. 23 31 21 Y = a. Find the equation of a simple linear regression line using Excel. Note: Round your answers to 3 decimal places. Last Year 20.536 + This Year b. Compute trend and seasonal factor from a linear regression line obtained with Excel. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Period 1 2 3 4 1 1 2 3 4 2 QUANTITY (UNITS) 16 29 33 20 3 4 0.714 t Trend Forecast 0.800 1.047 1.367 0.898 0.664 1.168 1.292 0.762 Seasonal Factors 0.732 1.108 1.330 0.830 0.732 1.108 1.330 0.830
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