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Question:
Shown below are rental and leasing revenue figures for office machinery and equipment in the United States over a 7-year period according to the U.S. Census Bureau. Use this data and the regression tool in the data analysis tool pack to run a linear regression. Based on the formula you get from the regression output, answer the following questions: a) What is the forecast for the rental and leasing revenue for the year 2011? b) How confident are you in this forecast? Explain your answer by citing the relevant metrics.
Year Rental and Leasing ($ millions) 2004 5,860. 2005 6,632. 2006 6,543. 2007 5,952. 2008 5,732. 2009 5,423. 2010 4,589
Answer:
1a: forecast
The required forecast for the year 2011 will be 2021.20
1b: reliability
The reliability of the above forecast is 61%
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LINEAR PROGRAMMING MODELS
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