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

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