1. How many units would you forecast for a day in which the high temperature is 89 degrees?
2. How many units would you forecast for a day in which the high temperature is 41 degrees?
3. Based on the results of the regression analysis as shown earlier, what action would you advise Gene to take in order to increase daily output?
4. Do you think Gene has developed an effective forecasting tool?
Gene Butcher is owner and president of Butcher Products, Inc., a small company that makes fiberglass ducting for electrical cable installations. Gene has been studying the number of duct units manufactured per day over the past two and a half years and is concerned about the wide variability in this figure. To forecast production output, costs, and revenues properly, Gene needs to establish a relationship between output and some other variable.