b$.$ Develop a causal regression model to forecast demand that includes both time and the introduction of a new chip as explanatory variables.

c$.$ What would the forecast be for the next month if a new chip is$$ introduced? What would it be if a new chip is not$$ introduced?The accompanying data shows the demand for one type of chip used in industrial equipment from a small manufacturer.

a$.$ Construct a chart of the data. What appears to happen when a new chip is introduced?

b$.$ Develop a causal regression model to forecast demand that includes both time and the introduction of a new chip as explanatory variables.

c$.$ What would the forecast be for the next month if a new chip is introduced? What would it be if a new chip is not introduced?

Click here to view the demand data.

Click here to view chart d$.$

Click here to view chart c$.$

Click here to view chart a$.$

Click here to view chart b$.$

What appears to happen when a new chip is introduced? Select the correct choice below.

A$.$ There is no discernible pattern between new chips being introduced and demand.

B$.$ As new chips are introduced, the demand spikes.

C$.$ As new chips are introduced, the demand increases slightly then levels off.

D$.$ As new chips are introduced, the demand decreases.

b$.$ Develop a causal regression model to forecast demand that includes both time and the introduction of a new chip as explanatory variables.

Demand $=+,$ month $+,$ New Chip Introduced

$($Type integers or decimals rounded to three decimal places as needed.$)$