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    Predicting sales using linear regression line estimation

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    ACT Networks, Inc. develops, markets, manufactures, and sells integrated wide-area network access products. The following are annual sales data (in millions of dollars) from 2002 to 2007. Based on this data develop a linear trend equation for this time series. What is the firm's average increase in sales per year? Provide a forecast for sales for 2008.

    Year Sales
    (t) (Y)
    1 5.4
    2 6.2
    3 12.7
    4 20.6
    5 28.4
    6 44.9

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    Solution Preview

    Please see the attached file for complete solution. Work done with the help of equation writer and graph may not print here.


    Year Sales
    X (Y) X^2 Y^2 XY
    1 5.4 1 29.16 5.4
    2 6.2 4 38.44 12.4
    3 ...

    Solution Summary

    Solution describes the steps in findind linear trend line using least square method. It also how linear estimated line can be used to forcast sales.