Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 52P
Bus and subway ridership for the summer months in London, England, is believed to be tied heavily to the number of tourists visiting the city. During the past 12 years, the data on the next page have been obtained:
a) Plot these data and decide if a linear model is reasonable.
b) Develop a regression relationship.
c) What is expected ridership if 10 million tourists visit London in a year?
d) Explain the predicted ridership if there are no tourists at all.
e) What is the standard error of the estimate?
f) What is the model’s correlation coefficient and coefficient of determination?
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Cadbury Schweppes owns and operates a chain of 12 vegetable protein "hamburger" outlets in northern Louisiana. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars; advertising expenses are in tens of thousands of dollars. Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of R240,000? R300,000?
Store 1 2 3 4 5 6 7 8 9 10 11 12Advertising 14 11 15 16 24 28 22 21 26 43 34 9Sales 6 3 5 5 15 18 17 12 15 20 14 5
Sales over the past 10 years are shown below. Using the method of least squares, calculate the values of a and b to complete this regression equation.
Year
Sales
1
1,640
2
1,850
3
1,240
4
1,250
5
1,980
6
1,400
7
1,060
8
1,430
9
1,050
10
1,990
(Indicate a negative answer using a "-" sign. Do not round intermediate calculations and round your answer to 3 decimal places.)
What is your forecast for next year's sales? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Arnold Tofu owns and operates a chain of 12 vegetable protein “hamburger” restaurants in
northern Chicago area. Sales figures and profits for the stores are in the table below. Sales are
given in millions of dollars; profits are in hundreds of thousands of dollars. Calculate a regression
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Chapter 4 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
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