Question

The Game Reserve Management aims to access the vehicle’s usage to sustain it’s operations (assuming 10 km =1litre). A study reveals that the demand for the vehicle has fluctuated per week as shown below

Trips per week 5 6 7 8 9 10
Number of days 48 72 64 60 96 60

17. What is the likely demand for this van in the next 13 week period? use the following random numbers to foresee the future 88,44, 56, 31,04,37,16,73,31, 10, 82, 59, 82 *

Answer 1

The data that is provided is:

Trips per week	Number of days
5	48
6	72
7	64
8	60
9	96
10	60

Run an OLS regression of "Trips per week" against "Number of days". The result is:

Trips per week	Number of days		SUMMARY OUTPUT
5	48
6	72		Regression Statistics
7	64		Multiple R	0.418978349
8	60		R Square	0.175542857
9	96		Adjusted R Square	-0.030571429
10	60		Standard Error	1.899210362
			Observations	6
			ANOVA
				df	SS	MS	F	Significance F
			Regression	1	3.072	3.072	0.851677294	0.408306804
			Residual	4	14.428	3.607
			Total	5	17.5
				Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
			Intercept	4.3	3.55309724	1.210211742	0.292820642	-5.564979442	14.16497944	-5.564979442	14.16497944
			Number of days	0.048	0.052012018	0.922863638	0.408306804	-0.096408512	0.192408512	-0.096408512	0.192408512

Thus, the OLS regression equation is: Trips per Week = 4.3 + 0.048*Number of days

Thus, for the given random numbers for the next 13 weeks, the likely demand for the van is:

Number of days	Predicted Trips per week (rounded off to nearest integer) Predicted Trips per week = 4.3 + 0.048*Number of days
88	9
44	6
56	7
31	6
4	4
37	6
16	5
73	8
31	6
10	5
82	8
59	7
82	8