5. Regression Analysis Method (Assignment No. 1) Y=a+bx Where, y = Working capital (dependent variable) a=intercept of the least square b=slope of the regression line x=Sales (independent variable) For determining the values 'a' and 'b'two normal equations are used which can be solved simultaneously: The sales and working capital figures of Revilla Ltd. for a period of 5 years are given as follows: Year Sales (in '000) 2013 Working Capital ('000) 12 15 20 2014 60 80 120 130 160 2015 21 2016 2017 23 You are required to forecast the working capital requirements of the company for the year 2020 taking the estimated sales of 200. The relationship between sales working capital can be represented by: y = a +bx Year X2 Sales (in '000) (x) 60 WC ('000) (y) 12 2015 80 15 120 2016 2017 2018 2019 130 160 20 21 23