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 4 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            

Q2)

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 4 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 4,210 February 4,310 March 4,010 April 4,410 May 5,010 June 4,710 July 5,310 August 4,910 September 5,410 October 5,710 November 6,310 December 6,010

Explanation / Answer

Using linear regression analysis,

The results obtained are

Best-fit values

Slope 192.3 ± 22.57

Y-intercept3777 ± 166.1

X-intercept-19.64

1/Slope0.0052

95% Confidence Intervals

Slope142.0 to 242.6

Y-intercept3407 to 4147

X-intercept-28.95 to -14.16

Goodness of Fit

R square0.8790

Sy.x269.9

Is slope significantly non-zero?

F 72.62

DFn,DFd 1,10

P Value< 0.0001

Deviation from horizontal? Significant

Data

Number of XY pairs 12

Equation Y = 192.3*X + 3777 . we use this equation to calculate the future values. For January we take x= in the continuum as 13, February as 14 and so on

The table thus obtained is as follows

Jan

Month(Next year) Forecast

Jan

6276.9 Feb 6469.2 Mar 6661.5 Apr 6853.8 May 7046.1 June 7238.4 July 7430.7 Aug 7623 Sept 7815.3 Oct 8007.6 Nov 8199.9 Dec 8392.2

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