Question: From the below data set, estimate a regression model to forecast net cash flow based on sales. After estimating the regression, forecast net as flow:

From the below data set, estimate a regression model to forecast net cash flow based on sales. After estimating the regression, forecast net as flow:

a.) assuming Sales of $5,000, $6,000, and $3,000

b.) using the mean of Sales

c.) Using the min and max of Sales

Period NCF ($) Sales ($)
1 2,000 3,360
2 4,000 6,720
3 3,500 5,880
4 800 1,344
5 2,700 4,536
6 3,600 6,048
7 3,750 6,300
8 520 873.60
9 1,100 2,057
10 1,200 2,244
11 1,800 3,366
12 2,100 3,927
13 2,200 4,114
14 3,500 6,545
15 4,500 8,415
16 5,700 10,659
17 1,200 2,244
18 1,300 2,145
19 1,500 2,475
20 1,800 2,970
21 2,l100 3,465
22 4,000 6,600
23 4,500 7,425
24 5,300 8,268
25 2,400 3,744

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