Exam Question 2 – Statistics
You are asked to predict orders for the next two periods. You have information
available for the overtime hours used for each month.
Month
Orders
Overtime
1
53
22
2
56
23
3
61
25
4
63
31
5
67
21
6
74
22
7
73
20
8
77
29
9
84
23
10
87
12
11
88
22
12
94
26
13
92
16
14
99
17
Find the best method to predict orders.
Discuss the model fit.
Predict the orders for the next two periods.
Would you recommend using this model? Explain.
Solution Preview
2.a.I will use the linear model method to predict orders, specifically I will use simple linear regression model.
b The equation of the model fit is;
Orders = 49.9121 + 3.5165month
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