A Home Depot store in Jacksonville wants to forecast the demand of fire pits during the first
Question:
A Home Depot store in Jacksonville wants to forecast the demand of fire pits during the first winter weekends. The product manager found that in the past there has been a link between temperature and sales of fire pits. She wants to build a causal forecast model with the following data collected over the past winter.
Temperature [°F] Daily sales (Unit)
62 40
65 32
71 23
76 12
78 6
81 7
86 5
88 4
91 1
Y = -1.3068x + 115.79
R² = 0.9036
Required:
a. How much demand can the store expect if the temperature is 72°F?
b. How do you interpret the b coefficient in this linear regression equation?
c. How do you interpret the quality of this causal forecast?
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor