Explore BrainMass
Share

# Calculate regression; forecast sales

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Tucson Machinery, Inc. manufactures numerically controlled machines, which sell for an average price of \$0.50 million each. Sales for these NCMs for the past two years were as follows:

(see chart in attached file)
Quarter Quantity Quarter Quantity
I 12 I 16
II 18 II 24
III 26 III 28
IV 16 IV 18

a. Calculate regression equation
b. Forecast sale for the year 2000 and 2001

#### Solution Summary

Discussion and computations provided.

\$2.19

## ABC Furniture Company Linear Regression

See Attached

Background:
Linear Regression Forecasting and Decision Trees
Why is Forecasting important? How can we use Linear Regression as a forecasting method?
Read this introductory resource: Forecasting for Business and Using Linear Regression (attached)
Read Chapter 6, Regression Analysis pp. 159-166, in this resource:
Chase, C. W. (2013). Demand-driven forecasting: A structured approach to forecasting. John Wiley & Sons: Somerset, NJ. Retrieved from the Ebrary. Could not retrieve chapter 6 from Ebrary but found Chapter 6 on google (https://books.google.com/books?id=oe1CYQ5TxW0C&pg=PT62&source=gbs_selected_pages&cad=2#v=onepage&q&f=false)
The topics discussed here include:
1. Definition of regression
2. Correlation and regression
3. How to calculate the regression equation of X on Y.
OPTIONAL: Two videos on Khan Academy showing how to calculate regression coefficients.