a. Determine the regression equation. (Round to 2 decimal places.) Regression equation: ŷ = ______ + ______ t b. Determine the specific index for each quarter. (Indexes should be in decimal form (e.g. 1.36 not 136). Rounded to 2 decimal places.) Quarter Quarterly Index Q1 Q2 Q3 Q4

a. Determine the regression equation. (Round to 2 decimal places.) Regression equation: ŷ = + t b. Determine the specific index for each quarter. (Indexes should be in decimal form (e.g. 1.36 not 136). Rounded to 2 decimal places.) Quarter Quarterly Index Q1 Q2 Q3 Q4

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 6P: Do the sales prices of houses in a given community vary systematically with their sizes (as measured...

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Question

The following data are the last three years of quarterly sales ($ thousands) for AmeriWeld. They are looking to forecast their sales for the upcoming year, 2021.

Quarter	t	Sales $ thousands (y)
2018 Q1	1	15
Q2	2	14
Q3	3	13
Q4	4	37
2019 Q1	5	54
Q2	6	34
Q3	7	67
Q4	8	73
2020 Q1	9	77
Q2	10	62
Q3	11	94
Q4	12	101

a. Determine the regression equation. (Round to 2 decimal places.)

Regression equation: ŷ = ______ + ______ t

b. Determine the specific index for each quarter. (Indexes should be in decimal form (e.g. 1.36 not 136). Rounded to 2 decimal places.)

Quarter	Quarterly Index
Q1
Q2
Q3
Q4

c. What are the estimated sales (forecast) for the next four quarters? (Values in $thousands. Round to 2 decimal places.)

Quarter	Forecasted Sales
2021-1
2021-2
2021-3
2021-3

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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