The supply chain manager seeks a better way to forecast the demand for door hinges and believes that the demand is related to advertising expenditures. The following are sales and advertising data for the past 5 months: MonthSales (Thousands of Units)Advertising (Thousands of $)12642.521161.331651.441011.052092.0The company will spend $1,750 next month on advertising for the product. Use linear regression to develop an equation and a forecast for this product.

Given data is To determine: Forecast using linear regression

Answered: The supply chain manager seeks a better…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

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The supply chain manager seeks a better way to forecast the demand for door hinges and believes that the demand is related to advertising expenditures. The following are sales and advertising data for the past 5 months:

Month	Sales (Thousands of Units)	Advertising (Thousands of $)
1	264	2.5
2	116	1.3
3	165	1.4
4	101	1.0
5	209	2.0

The company will spend $1,750 next month on advertising for the product. Use linear regression to develop an equation and a forecast for this product.

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