Develop a simple linear regression analysis

Assignment Help Basic Statistics

Reference no: EM131874120

Question: Finley Heaters Inc. is a mid sized manufacturer of residential water heaters. Sales have grown during the last several years, and the company's production capacity needs to be increased. The company's management wonders if national housing starts might be a good indicator of the company's sales.

Year	National Housing Starts (millions)	Finley Heaters' Annual Sales (millions of dollars)
1	6.2	57
2	5.1	59
3	6.5	65
4	7.9	78
5	6.3	72
6	7.4	80
7	7.0	86

- Develop a simple linear regression analysis between Finley Heaters' sales and national housing starts. Forecast Finley Heaters' sales for the next two years. The National Home Builders Association estimates that national housing starts will be 7.1 million and 8.0 million for the next two years.

- What percentage of variation in Finley Heaters' sales is explained by national housing starts?

- Would you recommend that Finley Heaters management use forecast from Part a to plan facility expansion? Why or why not? What could be done to improve the forecast?

Reference no: EM131874120

Questions Cloud

How many total cfr titles are there : Blood Borne Pathogen regulations are under the Department of Labor - which Title relates to the department of Labor?

Prepare a bank reconciliation as of august : The August 31 balance shown on the bank statement is $9,829. Prepare a bank reconciliation as of August 31 from the above information

Explain thoroughly the exports-imports model in argentine : Explain thoroughly the Exports-Imports model in Argentine (1880 -1930). Effects of the Immigration Process. Juan Domingo Peron and his Time.

Find the x-coordinate for point : She knows that the distance between the x-coordinates is 3 units. Which of the following fractions will let her find the x-coordinate for point C?

Develop a simple linear regression analysis : Develop a simple linear regression analysis between Finley Heaters' sales and national housing starts. Forecast Finley Heaters' sales for the next two years.

Closing price of the toy company stock : What was the closing price of each stock on that? day?

Discusses the length of the coverage : Compose an essay to distinguish when an employee is covered by Workers' Compensation or covered by private/public health insurance.

Determination of futures prices : If the interest rate is 4%, what do you think should be the fair value of the stock futures contract?

What is yield to maturity and expected capital gains yield : What is the yield to maturity? what is the expected current yield? what is the expected capital gains yield?

User Account

All Pages