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The management of Hekima Airlines have hypothesized that their financial performance (Y in ksh 100 millions) is influenced by the number of bookings per month
The management of Hekima Airlines have hypothesized that their financial performance (Y in ksh 100 millions) is influenced by the number of bookings per month (X1in 000) as well as the total monthly distance covered (X2 in 000) on all routes. They have assembled the following data over the last 15 months:
X1 | X2 | Y |
150 | 28 | 48 |
165 | 33 | 53 |
171 | 38 | 60 |
149 | 34 | 47 |
176 | 41 | 63 |
166 | 40 | 55 |
182 | 46 | 65 |
180 | 49 | 71 |
190 | 54 | 71 |
174 | 51 | 66 |
196 | 56 | 75 |
194 | 55 | 75 |
202 | 62 | 81 |
205 | 60 | 86 |
210 | 64 | 88 |
Required:
Using OLS method, forecast the profit that the airline will make if they make effort to secure 250,000 bookings and move their aircrafts over a distance of 80,000 kilometres.
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