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The demand for a product of Carolina Industries varies greatly from month to month.
Based on the past two years of data, the following shows the monthly demand at Carolina
Industries.
Unit Demand - # Months
300 - 4
400 - 6
500 - 9
600 - 5
a. If the company places monthly orders equal to the expected value of the monthly demand, what should Carolina's monthly order quantity be for this product?
b. What are the variance and the standard deviation for the number of units demanded?
Determine the coefficient of determination (Use Megastat or Excel, Tools, Data Analysis, Regression function). Interpret the result.
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