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Question - Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
MONTH
DEMAND (UNITS)
January
4,170
February
4,270
March
3,970
April
4,370
May
4,970
June
4,670
July
5,270
August
4,870
September
5,370
October
5,670
November
6,270
December
5,970
Required -
a. Using linear regression analysis, what would you estimate demand to be for each month next year?
b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence?
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