Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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The sales and profits (in $ million) of an electric car in New Zealand is as follows. The company would like to make a forecast for future
profit. Use the data below to develop a Linear Regression forecasting model. (To make your computation easier, b = 0.0159 is given)
Unit Sales, x
(in 5 millions)
$7
2
6
4
14
15
16
12
14
20
15
Profits, y
(in 5 millions)
Answer:
$0.15
0.10
0.13
0.15
0.25
0.27
0.24
0.20
0.27
0.44
0.34
0.17
7
How much should this company have in sale to make $500,000 in profit? (2 decimal points)
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Transcribed Image Text:The sales and profits (in $ million) of an electric car in New Zealand is as follows. The company would like to make a forecast for future profit. Use the data below to develop a Linear Regression forecasting model. (To make your computation easier, b = 0.0159 is given) Unit Sales, x (in 5 millions) $7 2 6 4 14 15 16 12 14 20 15 Profits, y (in 5 millions) Answer: $0.15 0.10 0.13 0.15 0.25 0.27 0.24 0.20 0.27 0.44 0.34 0.17 7 How much should this company have in sale to make $500,000 in profit? (2 decimal points)
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