i) Develop the least squares regression equation for Sales. (2 marks) ii) iii) Using the results of (i), find the estimated sales if the number of Ads is 25 Foreign Exchange Rate is US$1 = J$127.25 and the Inflation Rate is 7.5. What is the quality of the estimator, and what does it mean? (4 marks) (3 marks) iv) What is the strength of the relationship, and the relationship between the dependent variable and the independent variables as a group? (2 marks) statistics for each of the Independent variable and 6 of 8 significant or not significant. (3 marks) Question 4 (20 marks) Place your answers in the booklet provided a) Define aggregate planning, its role and purpose. (3 marks) b) Describe the three fundamental trade-offs available in Aggregate Planning. Relate them appropriately to the Chase and Level strategies. (5 marks) c) Consider the following Scenario and solve the problem, using Aggregate Planning strategies. (12 marks) 5 SCENARIO George Neufville operates small beverage factory. He would like to optimize his profitablity and has decided to use aggregate planning. He has asked you, a Consultant, to assist him in this process. You advise him of the three costs involved and explained that in an aggregate plan increases in one of the costs typically results in the reduction of the other two. Mr. Neufville presents you with his quarterly demand information and has asked you to compute his total cost. However, you advise him that you will use two of the aggregate planning strategies and discuss the ramifications of each. Required: (SHOW WORKINGS IN YOUR BOOKLET, AND COMPLETE THE TABLES BELOW) Compute Mr. Neufville's total costs based on the data provided using the: i) Level Aggregate Planning Method (5marks) ii) Chase Aggregate Planning Method (5marks) iii) Identity the method that yields the lower total cost. (2 marks) ANS: (i) LEVEL METHOD Quarter Demand Regular Prodn Inventory Backorder No. of Workers # Hired # Fired 1 162000 2 135000 3 250000 4 125000 Total TOTAL PER FACTOR Factor Unit Cost TOTAL COST (ii) CHASE METHOD Quarter Demand Regular Prodn Inventory 1 162000 2 135000 3 250000 4 125000 Total TOTAL PER FACTOR Factor Unit Cost TOTAL COST (iii) Comment: AUBANYOLE No. of Workers # Hired # Fired 6