Posted by **Adam** on Wednesday, November 29, 2006 at 10:01pm.

The table below shows annual demand (in 100,000 units per year) for Widgets. Use this information to calculate a linear trend forecasting model using regression analysis. Use your trend estimate to forecast demand for the years 1995 and 2000.

Year Demand

1990 1

1991 4

1992 5

1993 8

Being as my profession decides to spring questions on us that he hasn't taught, I'm at a loss on how to approach this problem, let alone solve it.

Any help is greatly appreciated.

The regression equation is Y=-1+2.2t

where Y=the output and t is the time. Hence the demand for1995 is

Y=-1+(2.2).6=-1+13.2=12.2=12(approx.)

the demand in 2000 is

Y=-1+(2.2).11=-1+24.2=-1+24.2=23.2=23 (approx.)

## Answer this Question

## Related Questions

- Economics - The table below shows annual demand (in 1,000,000 units per year) ...
- Management - Below you will find product demand for the past five years for XYZ ...
- statistics - (a) Plot the data on lightning deaths. (b) Describe the trend (if ...
- statistics - (a) Plot the data on lightning deaths. (b) Describe the trend (if ...
- Probability/Decision Analysis - A manufacturer is trying to decide whether to ...
- economics - Suppose the price of widgets falls from $7 to $5 and consumption of ...
- economics - A linear trend equation for sale of the form Qt = a + bt was ...
- Economics - Economyst, please help Rubax__ a U.S. manufacturer of athletic shoes...
- econmics - Suppose the price of widgets rises from $7 to $9 and consumption of ...
- Investments - You are to analyze and compare one company from the holdings to ...