Use an appropriate method of forecasting when you are given this data and come up with a forecast for years 5 and 6. Year 1 demand 100, yr 2 200, yr 3 150, yr 4 200.

Use an appropriate method of forecasting when you are given this data and come up with a forecast for years 5 and 6. Year 1 demand 100, yr 2 200, yr 3 150, yr 4 200.

 

Solution

ear Demand
1 100
2 200
3 150
4 200

https://d2vlcm61l7u1fs.cloudfront.net/media%2Fc07%2Fc073d6b3-4041-403c-808a-5d78ed86bc89%2Fphp76PijG.png

With the given set of data, trend analysis with regression equation is used to forecast the demand in year 5 and year 6.

The regression equation is:

Y = 25X + 100

For Year 5, Forecasted Demand (Y) = 25*5 + 100 = 225

For year 6,

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