4.26

George Kyparisis owns a company that manufactures sailboats. Actual demand for Georges sailboats during each of the past four seasons was as follows:

	YEAR
SEASON	1	2	3	4
Winter	1400	1200	1000	900
Spring	1500	1400	1600	1500
Summer	1000	2100	2000	1900
Fall	600	750	650	500

George has forecasted that annual demand for his sailboats in year 5 will equal 5,600 sailboats. Based on this data and the multiplicative seasonal model, what will the demand level be for Georges sailboats in the spring of year 5?

4.49

Accountants at the Tucson firm, Larry Youdelman, CPAs, believed that several traveling executives were submitting unusually high travel vouchers when they returned from business trips. First, they took a sample of 200 vouchers submitted from the past year. Then they developed the following multiple regression equation relating expected travel cost to number of days on the road (x₁) and distance traveled (x₂) in miles:

= $90.00 + $48.50x₁ + $0.40x₂

The coefficient of correlation computed was 0.68.

a) If Donna Battista returns from a 300-mile trip that took her out of town for 5 days, what is the expected amount she should claim as expenses?

b) Battista submitted a reimbursement request for $685. What should the accountant do?