We place the values of “Period” and “Demand” as provided in excel in two adjacen

Question

We place the values of “Period” and “Demand” as provided in excel in two adjacent columns

Let the corresponding regression line

Y = A +B.t

Where ,

T ( independent variable ) = Period

Y ( dependent variable ) = Demand

A, b = constants

Upon applying the formula LINEST ( ) in excel, we obtain following values :

A= - 4.33

B = 7.33

Hence,

Y = 7.33.t – 4.33

The predict demand for period 15, we have to apply t = 15 in above formula to get value of Y i.e. Forecasted value of demand

Accordingly ,

Forecasted value of demand for period 15 = 7.33x 15 – 4.33 = 109.95 – 4.33 = 105.62

PREDICTED DEMAND FOR PERIOD 15 = 105.62

PREDICTED DEMAND FOR PERIOD 15 = 105.62

Explanation / Answer

2. (0.2 points) The table below shows the daily inventory for the past 10 periods. Assuming that there is no seasonality involved, please use the least squares regression to predict demand at period 15. (You may want to use Excel) Period Demand 10 100 10 15 15 50 40 50 60 20

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