Question

5)Happy Baby, a maker of baby foods, has found a high correlation between the aggregate company sales (in $100,000) and the number of births nationally the preceding year (one year prior). Suppose that the sales and the birth figures during the past eight years are

Sales U.S. births

                                 Year           ($100,000)        in millions

                                    1                      6.1                   2.9

                                    2 6.4                   3.4

                                    3                      8.3                   3.5

                                    4 8.8                   3.1

                                    5 5.1                   3.8

                                    6 9.2                   2.8

                                    7 7.3                   4.2

                                    8                      12.5 3.7

The linear regression equation for sales and births is calculated as follows: y = 4.16x - 5.85. Forecast the sales in year 9. (Note that the units for all the numerical choices below are in $100,000s)

a. 46.15

b. Sales in year 9 can not be forecasted since we do not have the birth rate in year 9.

c. 5.8

d. 17.5

e. 31.59

f. 9.5

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6) Happy Baby, a maker of baby foods, has found a high correlation between the aggregate company sales (in $100,000) and the number of births nationally the preceding year (one year prior). Suppose that the sales and the birth figures during the past eight years are

Sales U.S. births

                                 Year           ($100,000)        in millions

                                    1                      6.1                   2.9

                                    2 6.4                   3.4

                                    3                      8.3                   3.5

                                    4 8.8                   3.1

                                    5 5.1                   3.8

                                    6 9.2                   2.8

                                    7 7.3                   4.2

                                    8                      12.5 3.7

Name the independent and dependent variables given the correlation information.

a. "Births" is the independent variable and "Year" is the dependent variable.

b. "Sales" is the independent variable and "Year" is the dependent variable.

c. "Births" is the independent variable and "Sales" is the dependent variable.

d. "Sales" is the independent variable and "Births" is the dependent variable.

e. "Year" is the independent variable and "Sales" is the dependent variable.

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7) The seasonal indeces (relatives) for the months of January, February, and March are given as 1.10, 0.99, and 0.90, respectively. The sales of coffee cups in January, February, and March of 2012 were respectively 88, 99, and 108. Compute the deseasonalized sales data accordingly.

a. 96.8, 98.01, 97.2

b. 88, 99, 108

c. 80, 100, 120

d. Enough information is not given.

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8) For the following data, construct the linear regression line to forecast future sales:

Week	Sales
1	10
2	26
3	45
4	70

Select one:

a. y = -12 + 19.9 t

b. y = 12 - 19.9 t

c. y = 19.9 + 12 t

d. y= 19.9 - 12 t

e. y = 12 + 19.9 t

Answer 1

Answering the first question as per Chegg policy

Answer 5: Option F - 9.5

Explanation: We know that the linear trend equation is, Y = 4.16X - 5.85

where Y = Sales in ($ 100,000) and X = Number of births in last year (Millions)

For Year 9 forecast,

X = Number of births in 8^th year = 3.7 Millions

Year 9 Forecast = 4.16X - 5.85

= (4.16 x 3.7) - 5.85

= 9.5

Hence Option F is correct