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National Scan, Inc., sells ratio frequency inventory tags. Monthly sales for a 6-month period were as follows:
Month:
Sales
Feb
23
Mar
35
Apr
31
May
37
Jun
56
Jul
51
Disregard the demand pattern of the given time series, You are asked to use the time series to derive a trend equation. In order to derive the trend equation is Ft = a + bt, you have to compute several components to compute the values for the variables a and b. Answer the following questions pertaining to information that are relevant to deriving the trend equation.
a) The Sty =
b) The Sy =
c) The value for the b (slope of the trend line) = (in 3 decimal places)
d) The value for the a (intercept of the trend line) = (in 3 decimal places)
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Accurate demand forecasting is essential to successful operations management.
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