Question: A firm has been using the following equation to predict annualdemand for helix gears: y t = 55 + 4t, where t is in years.

A firm has been using the following equation to predict annualdemand for helix gears:

yt = 55 + 4t,

where t is in years.

Thus, for example, the prediction for year 2 is 55 + 4*2 = 63

Actual demand for the past few years is shown below.

Year 2 3 4 5 6 7

Demand606569768585

Based on the data supplied is the forecasting model performing as well as it might?Support your answer quantitatively!

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