Question: Industry benchmark data has indicated that demand for high energy fruit juice drinks for joggers has grown almost 50 % over the past year. The
Industry benchmark data has indicated that demand for high energy fruit juice drinks for joggers has grown almost 50 % over the past year. The number of joggers continues to expand, so The Fresh Connection also expects the demand for these specialty drinks to continue expanding. The Fresh Connection, however, isn't certain that demand for their drinks has kept pace with the industry benchmark data. They have provided you with data for last year which is shown in the table below. Using least squares regression analysis, what would you estimate demand to be for December of the following year (Month 24)?
| Last Year | Sales |
| January (Month 1) | 20,037 |
| February (Month 2) | 16,673 |
| March (Month 3) | 19,055 |
| April (Month 4) | 23,905 |
| May (Month 5) | 23,170 |
| June (Month 6) | 26,772 |
| July (Month 7) | 27,506 |
| August (Month 8) | 28,764 |
| September (Month 9) | 29,414 |
| October (Month 10) | 31,004 |
| November (Month 11) | 26,972 |
| December (Month 12) | 25,653 |
Use Months 1 through 12 to create your forecast and enter your value for Month 24 for this question.
If you create a graph in Excel and use the "add a trendline" function within the graph, be sure to go into the edit mode and adjust the number of decimal places displayed. Extend to at least 7 decimal places for your values of (a) and (b) in your equation. If you don't include sufficient decimal places you will fall outside the margin of error in the final answer. PLEASE show your work.
Thanks
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
