Given the following data, create a Trend Projection with Least Squares Analysis. Compute the slope and intercept of the line. Use the Slope and Intercept data to project demand for 2020. Hint: You need to change the Data to reflect the more recent years:

Forecast Year Data Server Demand
2011 91
2012 101
2013 85
2014 99
2015 147
2016 180
2017 137

1. What is the equation of the line: Slope and intercept?
2. Project the demand for 2018, using x=8 (since we are forecasting for the next period, period 8)
3. Boston Data Servers received a call, confirming that Amazon is moving to Boston. They need to revise the new demand for 2017 to 300 units.
4. What is the new equation of the line: slope and intercept?
5. Project the Demand with the revised projection, using x=8
6. To evaluate the model we compare the historical demand and the trend line. Please comment on your personal findings.

1. Y= 12.78571429X + 68.85714286 , slope is 12.78571429 and y intercept is 68.85714286

2.  Demand = 171.14 approximately 171

3. Y =30.25X + 22.28571429

4. Y = 30.25X + 22.28571429

5. demand =264.29 approximately 264

6. when there are points changed being too far from the trend line (outlier) the accuracy of the equation becomes lesser.

Explanation:

1. firstly we use a scientific calculator to actually input values of X which is the number of years inputted and Y is the demand in that particular year.

we choose the statistics option to get to add the values on a calculator forthe value of a and b in the equation Y = a + bX. where b is the slope and a is the y intercept. which you can check online on how to input values for a trend projection of a regression line that best suites your scientific calculator.

2. we substitute a value of X= 8 in the first trend formula we got which is Y=12.78571429(8) + 68.85714286 = 171.14 = 171 which is the demand in 2018

3.we altered the 2017 value to 300 and used a calculator again to get the values of a and b in the equation Y= a + bX. which we got Y=  30.25X + 22.28571429 where the slope is 30.25 and the y intercept = 22.28571429.

5. we then substituted on the above formula we got in number 3 to get the demand Y= 30.25(8) + 22.28571429 = 264.29 or 264

6. we can see that the demand which was fo 2017 was changed to 300 and the equation changed drastically therefore we can conclude that the demand for 300 is an outlier point that is not part of the trend of this line.

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explanation:

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