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    Exercise 5 Activity 5

    Uploaded by

    Omar Katog

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    © All Rights Reserved
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    Exercise 5 Activity 5

    Uploaded by

    Omar Katog
    13 views2 pages

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    Download as docx, pdf, or txt
    13 views2 pages

    Exercise 5 Activity 5

    Uploaded by

    Omar Katog

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    EXERCISE 5

    Basic Estimation techniques in forecasting

    Name: __________________________________ Date: ________________


    Year/Course/Section: _____________________ Score: _______________

    Direction: Make a recording on how to run a multiple regression analysis using the data below. (Use
    excel to run the regression). Explain the results of the regression in the video as well. Video will be
    submitted thru a google drive that will be sent by the subject teacher.

    1. Suppose the airline has gathered data on its competitor’s average price and regional income over the
    same four-year period. In the management’s view, these factors may strongly affect demand. Table
    below lists the complete data set. Management would like to use these data to estimate a multiple-
    regression equation to be able to forecast average number of coach seats that will be sold. Using
    Microsoft excel, do a regression and determine the following:

    a. Regression equation
    b. The R2 and interpret its result
    c. As a manager how will you use the regression results as a forecasting tool to estimate sales?

    Year and Average # of coach Ave comp


    quarter seats Ave Price price Ave Income
    YEAR1 Q1 648 2500 2500 10400
    Q2 33.6 2650 2500 10150
    Q3 37.8 2650 2400 10300
    Q4 83.3 2400 2400 10500
    YEAR 2 Q1 111.7 2300 2400 10000
    Q2 137.5 2250 2600 9650
    Q3 109.5 2250 2500 9330
    Q4 96.8 2200 2400 9500
    YEAR 3 Q1 59.5 2300 2400 9700
    Q2 83.2 2350 2500 9900
    Q3 90.5 2450 2500 10250
    Q4 105.5 2400 2400 10500
    YEAR 4 Q1 75.7 2500 2200 10850
    Q2 91.6 2400 2300 10850
    Q3 112.7 2400 2500 10800
    Q4 102.2 2350 2400 10900

    2. As economic consultant to the dominant firm in a particular market, you have discovered that, at the
    current price and output, demand for your client’s product is price inelastic. What advice regarding
    pricing would you give?

    ACTIVITY 5
    Basic Estimation techniques in forecasting

    Name: __________________________________ Date: ________________


    Year/Course/Section: _____________________ Score: _______________

    Direction: Using google meet, demonstrate how to run multiple linear regression using excel. After
    running the regression, you should be able to answer the questions below.

    Suppose that the quantity sold depends not only on price but also on the amount spent on advertising
    the product as shown in the following table.

    QTY PRICE ADVERTISING COST

    (kilos) (peso/kilo) (pesos)

    55 100 550

    70 90 630

    90 80 720

    100 70 700

    90 70 630

    105 70 735

    80 70 560

    110 65 715

    125 60 750

    115 60 690

    130 55 715

    130 50 650

    a. What is the Regression equation?


    b. What does the R2 mean?
    c. As a manager how will you use the regression results as a forecasting tool to estimate sales?

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