Question: Infoworks is a large computer discount store that sells computers and ancillary equipment and software in the town where State University is located. Infoworks has collected historical data on computer sales and printer sales for the past 10 years, as follows:
Year Personal Computers Sold Printers Sold
1 1,045 326
2 1,610 510
3 860 296
4 1,211 478
5 975 305
6 1,117 506
7 1,066 612
8 1,310 560
9 1,517 590
10 1,246 676
a. Develop a linear trend line forecast to forecast printer demand in year 11.
b. Develop a linear regression model relating printer sales to computer sales in order to forecast printer demand in year 11 if 1,300 computers are sold.
c. Compare the forecasts developed in (a) and (b) and indicate which one appears to be more accurate.