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Mimi day care has been having increasing enrollment

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1. Mimi's Day Care has been having increasing enrollment over the past 4 years and they are worried about assuring that they will have the resources to handle more children. You have been asked to project what the enrollment may look like if current trends continue so that they may assure quality service to the parents in the area.

a. Use the linear regression formulas (as we did in class; also on page 271 of the book) to compute the linear trend line for this data and show your work.
Year Enrollment
1 119
2 135
3 146
4 169

b. Use your linear trend line to calculate the forecasts for enrollment in years 5 and 6.
c. Compute the linear trend line forecasts for years 1-4, and then compute the MAD, MSE, and TS values for these forecasts. Do all this in Excel. Be sure to show your calculations by using Ctrl~. And show a graph of actual vs. Forecast. Also make sure that the answers you got in part (a) equal what you got in excel.

Reference no: EM13699936

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