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Problem 3-14 Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow amost 50 percent over the past year. The
Problem 3-14 Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow amost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH January DEMAND (UNITS) 4,170 4,270 3,970 4,370 4,970 4,670 5,270 4,870 5,370 5,670 6,270 5,970 March April May July August November December a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast March April ay June July August October December b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Additional units
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