Question

Sales of​ Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years​ (see table​ below).

                                                    

Year	Sales
1	460460
2	510510
3	518518
4	563563
5	580580

​a) Forecasted sales for year 6 using the trend projection​ (linear regression) method are

614.1614.1

sales ​(round your response to one decimal​ place).

​b) The MAD for a linear regression forecast is

8.28.2

sales ​(round your response to one decimal​ place).

​c) The MSE for the linear regression forecast is

sales ​(round your response to one decimal​ place).

Answer 1

from given line equation:

year	sales(A)	forecast(F)	|A-F|	(A_F)^2
1	460	467.6	7.6	57.76
2	510	496.9	13.1	171.61
3	518	526.2	8.2	67.24
4	563	555.5	7.5	56.25
5	580	584.8	4.8	23.04
6		614.1
		average=	8.24	75.18

a)

Forecasted sales for year 6 =614.1

b)

MAD= 8.2

c)

MSE =75.2