Question

Demand for stereo headphones and MP3 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 last year was as follows t (Month) y (Demand) 1 4200 2 4300 3 4000 4 4400 5 5000 6 4700 7 5300 8 4900 9 5400 10 5700 11 6300 12 6000 Using linear regression analysis, what would you estimate demand to be for each month next year?

Answer 1

Demand for next year

Month 1 (x=13) = 3766.65+192.31*13 = 6267

Month 2 (x=14) = 3766.65+192.31*14 = 6459

Month 3 (x=15) = 3766.65+192.31*15 = 6651

Month 4 (x=16) = 3766.65+192.31*16 = 6844

Month 5 (x=17) = 3766.65+192.31*17 = 7036

Month 6 (x=18) = 3766.65+192.31*18 = 7228

Month 7 (x=19) = 3766.65+192.31*19 = 7421

Month 8 (x=20) = 3766.65+192.31*20 = 7613

Month 9 (x=21) = 3766.65+192.31*21 = 7805

Month 10 (x=22) = 3766.65+192.31*22 = 7997

Month 11 (x=23) = 3766.65+192.31*23 = 8190

Month 12 (x=24) = 3766.65+192.31*24 = 8382