Question

Using the Linear Regression Fit Line: y=0.409x+2.963, calculate a forecast for the 18th month. 2 Pts Actuals 12 0.4093x+2 9632 10 Calculate a Forecast for Month 18 18th Month Forecast a) b) Does this look like a good use of a regression approach & why? c) List any concerns you 2 might have if I asked you to forecast month 24 with the data for months 1 through 17 only? 0123456789 10 11 12 13 14 15 16 17 18

Answer 1

Regression line y=0.409 x+2.963

When x=18

Then, y=0.409 *18 +2.963 =10.325           

So 18^th month forecast =10.325

This will be a good approach for the forecasting provided that dependent variable pattern continues as in the past.

He main concerns are that the data after 18^th will not be provided and thus the patterns in them is not precise which can lead to some forecast errors.