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Least Squares Trend and Typical Seasonal Index

Need to know the equation setup and solution to the trend samples in Excel format.

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

Year Code Scrap
1999 1 2.0
2000 2 4.0
2001 3 3.0
2002 4 5.0
2003 5 6.0

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

Year I II III IV
2001 4 10 7 3
2002 5 12 9 4
2003 6 16 12 4
Quarter

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

Year Code Scrap
1999 1 2.0
2000 2 4.0
2001 3 3.0
2002 4 5.0
2003 5 6.0

Use Excel, we can get the following

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9
R Square 0.81
Adjusted R Square 0.746667
Standard Error 0.795822
Observations 5

ANOVA
...

Solution Summary

This solution provides equations for determining the least squares trend equation, amount of scrap, and typical seasonal index. The typical seasonal index for each of the four quarters are determined.

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