Question
A maker of baby foods has found a high correlation between the aggregate company sales(in $100.000) and the number of births nationally the preceding year.Suppose
A maker of baby foods has found a high correlation between the aggregate company sales(in $100.000) and the number of births nationally the preceding year.Suppose that the sales and birth figures during the past eight years are:
Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Sales(in $100.000) | 6.1 | 6.4 | 8.3 | 8.8 | 5.1 | 9.2 | 7.3 | 12.5 |
Births(in millions) | 2.9 | 3.4 | 3.5 | 3.1 | 3.8 | 2.8 | 4.2 | 3.7 |
a)Determine a regression equation for predicting sales based on births.Use years 2 through 8 as your baseline
b)What forecast for sales revenue in year 9 do you obtain
c)Suppose that births are 3.3 million in year 9 ,determine the sales revenue in year 10
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