# Determine the Least Squares Equation and Estimate

The numbers of bank failures for the years 1997 through 2001 are given below. Determine the least squares equation and estimate the number of failures in 2003.

Year Code Number of Failures

1997 1 79

1998 2 120

1999 3 138

2000 4 184

2001 5 200

Q3

3. The following table gives the annual amount of scrap produced by Machine Products, Inc.

Determine the least squares trend equation. Estimate the amount of scrap for the year 2003.

Year Code scrap(tons)

1997 1 2.0

1998 2 4.0

1999 3 3.0

2000 4 5.0

2001 5 6.0

9. Victor Anderson, the owner of Anderson Belts, Inc., is studying absenteeism among his employees. His workforce is small, consisting of only five employees. For the last three years he recorded the following number of employee absences, in days, for each quarter.

Determine a typical seasonal index for each of the four quarters.

Quarter

Year I II III IV

1999 4 10 7 3

2000 5 12 9 4

2001 6 16 12 4

Leave all answers in the same area as the example. easy to read please.

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Least Square Trend Equation

Determine the least squares equation. According to this information, what are the estimated sales for 2005?

Listed below is the net sales in $ million for Home Depot, Inc. and its subsidiaries from 1993 to 2002.

Determine the least squares trend equation. Estimate the amount of scrap for the year 2005.

Year Net Sales

1993

9,239

1994

12,477

1995

15,470

1996

19,535

1997

24,156

1998

30,219

1999

38,434

2000

45,738

2001

53,553

2002

58,247