What would you estimate demand to be for each month

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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?

Reference no: EM133183385

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