1 Table 25 gives data concerning pork sales (file Pork.xls).

Price is in dollars per hundred lb sold, quantity sold is in billions of pounds, per-capita income is in dollars, U.S.

population is in millions, and GNP is in billions of dollars.

a Use this data to develop a regression equation that could be used to predict the quantity of pork sold during future periods. Is autocorrelation, heteroscedasticity, or multicollinearity a problem?

b Suppose that during each of the next two quarters, price  $45, U.S. population  240, GNP  2,620, and per-capita income  $10,000. Predict the quantity of pork sold during each of the next two quarters.

c 68% of the time, we expect our prediction for pork sales to be accurate within _____.

d Use Winter’s method to develop a forecast for pork sales during the next two quarters. (Use the first two years to initialize.)