17. A Midwest distributor has handled a particular brand of two-cycle motor oil for the past 5 years. The demand data for the product during those years are given below.

a. Plot the data. Should the first year’s data be included in computing a linear regression model to estimate the trend in annual demand? Give a reason to support your answer.

b. Calculate a linear regression equation for annual demand based on the data you concluded in part a to be most appropriate.

c. Use your equation to estimate demand for years 6 and 7.

Transcribed Image Text:

YEAR DEMAND YEAR DEMAND 121 428 631 45 4 778 841 3 740