Demand for stereo headphones and MP3 players for joggers has caused Nina Industr

Question

Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:

a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. To be reasonably confident of meeting demand, Nina decides to use 2 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence?(Do not round intermediate calculations. Round your answer to the nearest whole number.)

Additional units            

MONTH DEMAND (UNITS) January 4,190 February 4,290 March 3,990 April 4,390 May 4,990 June 4,690 July 5,290 August 4,890 September 5,390 October 5,690 November 6,290 December 5,990

Explanation / Answer

Note:- As per our guideliness, only one question needs to be answered at a time, we appreciate your feedback and suggest you to ask the second part of the question separately.

MONTH LAST YEAR
DEMAND UNITS (a)
FORECAST (b)
ADDITIONAL UNITS January 4190 6285 2095 February 4290 6435 2145 March 3990 5985 1995 April 4390 6585 2195 May 4990 7485 2495 June 4690 7035 2345 July 5290 7935 2645 August 4890 7335 2445 September 5390 8085 2695 October 5690 8535 2845 November 6290 9435 3145 December 5990 8985 2995

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