Answer:
First month of next month ( x = 13) = 6170
second month ( x = 14 ) = 6389
Explanation:
Determine the estimate demand for each month next year ( use Linear regression )
Linear regression equation: y = a + bx
a = intercept between regression line and y-axis
b = slope of regression
x = month
y = demand
<u>Using excel table attached below</u>
∑x = 78
∑xy = 413340
∑y = 59360
∑(x)^2 = 650
N = 12
(∑x )^2 = 6084
next we will calculate the slope and intercept value
b ( slope ) = ( 12 * 413340 ) - ( 78 * 59360 ) / ( 12 * 650 - 6084 )
= 330,000 / 1716 = 192.31
intercept ( a ) = 59360 - ( 192.31 * 78 ) / 12 = 3696.65
Back to equation 1 :
Linear regression equation = Y = 3696.65 + 192.31 x
where x = number of month ( i.e. 13 , 14 ….. 24 )
<u>To determine the estimate demand for each month next month</u>
Linear regression equation : Y = 3696.65 + 192.31 x
first month of next month ( x = 13) = 3696.65 + 192.31 * ( 13 )
second month ( x = 14 ) = 3696.65 + 192.31 * ( 14 )
<em>Note : apply same equation to every month ( i.e. from x = 15 to 24 ) to determine the estimate demand for each month </em>
