Reconsider Prob. 27.7-11. Despite some fluctuations from year to year, note that there has been a basic
Question:
(a) Plot the data for the past 10 years (Years 1 through 10) on a two-dimensional graph with the year on the horizontal axis and the demand on the vertical axis.
T (b) Find the formula for the linear regression line that fits these data.
(c) Plot this line on the graph constructed in part (a).
(d) Use this line to forecast demand next year (Year 11).
(e) Use this line to forecast demand in Year 15.
(f) What does the formula for the linear regression line indicate is roughly the average growth in demand per year?
(g) Use the linear regression procedure in the forecasting area of your IOR Tutorial to generate a graph of the data and the linear regression line. Then experiment with the data to see how the linear regression line shifts as you drag any of the data points up or down.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Question Posted: