EBK BUSINESS ANALYTICS
3rd Edition
ISBN: 9780135231906
Author: Evans
Publisher: VST
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Question
Chapter 8, Problem 2PE
To determine
To construct: A scatter chart and find the type of model that is best for the provided data. Also, find the model equation using the Trendline tool.
Expert Solution & Answer
Answer to Problem 2PE
The best model for the given data is linear model.
Explanation of Solution
Given information:
The data set is:
| Price | Demand |
| $11 | 2180 |
| $13 | 2020 |
| $17 | 1980 |
| $19 | 1900 |
Graph:
The
- Enter data in excel sheet.
- Select the data of Price and Demand.
- Click on Insert > Charts > Scatter.
The obtained scatterplot is:
Interpretation:
From the above constructed scatterplot, it is clear that the data points of provided data set are forming straight line downward patter which implies that the linear model is appropriate for the given data set.
Hence, linear model is best representing the given data set.
Calculation:
Follow the provided steps of excel to find the trendline equation:
- Select the chart.
- Click on + symbol and select Trendline and click on more options.
- Select the Regression Type as linear.
- Tick on Display equation on chart.
The obtained results is
Hence, the required trendline is y=-30x+2470.
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Students have asked these similar questions
The following data are for calculator sales in units at an electronics store over the past nine weeks:
Week
Sales
Week
Sales
45
6
53
50
7
59
44
8
59
51
64
57
Use trend projection with regression to forecast sales for weeks 10 - 13. What are the error measures (CFE, MSE, G. MAD, and MAPE) for this forecasting procedure? How about ??
Obtain the trend projection with regression forecast for weeks 10 - 13. (Enter your responses rounded to two decimal places.)
Period
Forecast, F
10
64.81
11
67.06
12
69.31
13
71.56
Obtain the error measures. (Enter your responses rounded to two decimal places.)
CFE
MSE
MAD
MAPE
6.72
2.75
2.1
4.1 %
Find the coefficient of determination ().
The coefficient of determination ? =
(Enter your response rounded to two decimal places.)
The following table gives the number of pints of type A blood used at Damascus Hospital in the past 6 weeks:
a) The forecasted demand for the week of October 12 using a 3-week moving average =
Week Of
August 31
September 7
September 14
September 21
September 28
October 5
pints (round your response to two decimal places).
Pints Used
345
389
408
381
371
374
The following data are for calculator sales in units at an electronics store over the past nine weeks:
Week
Sales
Week
Sales
1
45
53
2
50
7
59
3
44
8.
59
4
51
9
64
5
57
Use trend projection with regression to forecast sales for weeks 10 - 13. What are the error measures (CFE, MSE, o, MAD, and MAPE) for this forecasting procedure? How about ?
Obtain the trend projection with regression forecast for weeks 10 – 13. (Enter your responses rounded to two decimal places.)
Period
Forecast, F,
10
64.81
11
67.06
12
69.31
13
71.56
Obtain the error measures. (Enter your responses rounded to two decimal places.)
CFE
MSE
MAD
МАРЕ
Chapter 8 Solutions
EBK BUSINESS ANALYTICS
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