- 20 Marks
QT – Nov 2015 – L1 – Q3 – Forecasting
Calculate the regression line for maize demand and forecast demand for the first three months of the next year using regression analysis.
Question
The monthly demand for maize (in hundreds of bags) for the last year in Bosua Market is shown below:
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Demand | 42 | 43 | 40 | 44 | 50 | 47 | 53 | 49 | 54 | 57 | 63 | 60 |
Required:
(a) Calculate the regression line y=a+bxy = a + bx for the data. (9 Marks)
(b) Using the regression line in (a), determine the forecast for next year:
(i) January, (1 Mark)
(ii) February, (1 Mark)
(iii) March. (1 Mark)
(c) Determine the Standard Error in forecasting demand in (b). (8 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Demand forecast, Forecasting, Regression Analysis, Standard error, Trend Analysis
- Level: Level 1
- Topic: Forecasting
- Series: NOV 2015