Question: a. Use simple linear regression analysis to develop a forecasting model for monthly demand. In this application, the dependent variable, Y, is monthly demand and
a. Use simple linear regression analysis to develop a forecasting model for monthly demand. In this application, the dependent variable, Y, is monthly demand and the independent variable, X, is the month. For January, let X = 1; for February, let X = 2; and so on.
b. Use the model to forecast demand for September, October, and November. Here, X = 9, 10, and 11, respectively.
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