Question

In: Operations Management

Dr. Lillian​ Fok, a New Orleans​ psychologist, specializes in treating patients who are agoraphobic​ (i.e., afraid...

Dr. Lillian​ Fok, a New Orleans​ psychologist, specializes in treating patients who are agoraphobic​ (i.e., afraid to leave their​ homes). The following table indicates how many patients Dr. Fok has seen each year for the past 10 years. It also indicates what the robbery rate was in New Orleans during the same​ year:

                                                                                                                                                                     

Year

1

2

3

4

5

6

7

8

9

10

Number of Patients

3636

3434

4141

4040

4040

5656

5858

5353

5959

6262

Robbery Rate per​ 1,000 Population

58.058.0

60.660.6

73.473.4

75.275.2

81.581.5

89.589.5

101.1101.1

94.294.2

102.2102.2

116.2116.2

The simple linear regression equation that shows the best relationship between the number of patients and year is ​(round your responses to three decimal​ places):

                                               

^

Y= _____+_____x

^

where Y ​= Dependent Variable and x​ = Independent Variable.

Using linear regression, the number of patients Dr. Fok will see in year 11=_______patients (round your response to two decimal places).

Using linear regression, the number of patients Dr. Fok will see in year 12=_______patients (round your response to two decimal places).

Solutions

Expert Solution

Answer a) Formulate a Linear Equation using the following steps:

Step 1: Let x = Independent Variable = No. of particular year, and y = Dependent Variable = No. No. of patients. First, prepare the following table:

Step 2: Find the column of xy, , and . Further, Find their total values as mentioned below:

Where,

xy = x * y,

= x * x

= y * y

Hence, we get,

Step 3: Find the values of 'a' as mentioned below:

Hence, a =

=

=

= 3023.267 (Rounded to 3 decimal places)

Step 4: Find the values of 'b' as mentioned below:

Hence, b =

=

=

= 329.933 (Rounded to 3 Decimal Places)

Step 5: Determine the regression equation:

= a + b X

Where a = 3023.267 (As per step 3), and b= 329.933 (As per step 4)

Hence, = 3023.267 + 329.933 X

Answer b) Forecast the no. of patients when Year = X = 11

By replacing the value of x in regression equation derived in step 5 of answer a), we get

= 3023.267 + 329.933 (11)

= 3023.267 + 3629.263

= 6652.53 Patients (Rounded to 2 decimal places)

Answer c) Forecast the no. of patients when Year = X = 12

By replacing the value of x in regression equation derived in step 5 of answer a), we get

= 3023.267 + 329.933 (12)

= 3023.267 + 3959.196

= 6982.46 Patients (Rounded to 2 decimal places)


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