c) Tyrell Garden Supply wants to forecast storage shed sales by weighting the pa

Question

c) Tyrell Garden Supply wants to forecast storage shed sales by weighting the past 3 months. The weights for past 3 months are given in the following table. What is the forecast for next January? [10 points] Period Weight Last month 1/2 Two months ago Three months abo 1/3 The following data relates the weekly sales figures of the bar to the number of guests registered in that week in a small bed-and-breakfast: Bar Sales Week Guest 16 12 18 14 $330 2 3 4 $270 $380 $300 Perform a linear regression that relates bar sales to guests (not to time) [10 points) If the forecast for next week is 20 guests, what are the sales expect ed to be? (10 pointsl a) b)

Explanation / Answer

a) to perform linear regression for these data use excel command path . the path of excel is

menu------> excel-----> enter the data of bar sales and guest------->data------.>data analysis-------> regression------>ok---------->input y range (select the data of bar sales )-------->input x range (select the data of guest from excel )------------------>output range (click on blank box in excel )--------> ok . the regression give the output as follows :

the regression line is y = bo + b1 (x) i.e.  

bar sales = intercept + slope ( guest )

bar sales = 50 + 18 ( guests )

b) put guests (x )= 20 in the regression line then

sales = 50 + 18 ( 20 ) ====> sales = 50 + 360

sales = 410 these is the answer.

if the forecast for next week is 20 guests , then the expected sales to be 410 .

the following output is the excel output for intercept and slope.

1.732050808

Coefficients Standard Error Intercept 50 26.26785107 X Variable 1 18

1.732050808

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