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 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Purchasing and Supply Chain Management
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ISBN:9781285869681
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ChapterC: Cases
Section: Chapter Questions
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Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 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 this year was as follows:
DEMAND (UNITS)
4,000
4,100
3,800
4,200
4,850
4, 500
5,150
4,750
5,250
5,550
6,150
5,850
MONTH
January
February
March
April
May
June
July
August
Septenber
October
Novenber
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 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Month
Forecast
January
February
March
April
May
June
July
Transcribed Image Text:Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 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 this year was as follows: DEMAND (UNITS) 4,000 4,100 3,800 4,200 4,850 4, 500 5,150 4,750 5,250 5,550 6,150 5,850 MONTH January February March April May June July August Septenber October Novenber 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 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast January February March April May June July
March
April
May
June
July
August
September
October
November
December
b. To be reasonably confident of meeting demand, Nina decides to use 2 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 unts
Transcribed Image Text:March April May June July August September October November December b. To be reasonably confident of meeting demand, Nina decides to use 2 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 unts
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