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The demand over the past 5 months for a brand new product is shown below: (show work)
MONTH DEMAND (number of units sold) May 2017 175
June 2017 195
July 2017 211
August 2017 233
September 2017 251
a. Plot the monthly demand data using a software OR on a sheet of graph paper.
b. Use TREND PROJECTIONS method to determine the equation of the trend line estimating the linear relationship between time (in months) and demand (in units sold).
c. Use the equation of the trend line to predict demand for the months of October, November, and December of this year.
(Hint: ‘May 2017’ will have a value of ‘1’ in the equation of the trend line, and by the same logic ‘September 2017’ will have a value of ‘5’ in the equation of the trend line.)
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