Use an appropriate method of forecasting when you are given this data and come up with a forecast for years 5 and 6. Year 1 demand 100, yr 2 200, yr 3 150, yr 4 200.
Expert Answer
Year Demand
1 100
2 200
3 150
4 200
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With the given set of data, trend analysis with regression equation is used to forecast the demand in year 5 and year 6.
The regression equation is:
Y = 25X + 100
For Year 5, Forecasted Demand (Y) = 25*5 + 100 = 225
For year 6, Forecasted Demand (Y) =25*6 + 100 = 250