1.
Listed below is the net sales in $ million for home
Depot, Inc. and its subsidiaries from 1997 to 2006.
Table
1: Net sales of different years
Year
|
Net Sales ($)
|
Year
|
Net Sales ($)
|
1997
|
50,600
|
2002
|
156,700
|
1998
|
67,300
|
2003
|
201,400
|
1999
|
80,800
|
2004
|
227,300
|
2000
|
98,100
|
2005
|
256,300
|
2001
|
124,400
|
2006
|
280,900
|
Note:
Add last three digits of your ID with Net Sales
i)
Determine the least square equation. On the basis of
this information, what are the estimated sales for 2010?
ii)
Plot Net Sales and Trend Line
Year
|
Net Sale($)
|
Time(t)
|
Net Sales + ID(047)
|
Y=a+bt
|
1997
|
$ 50,600.00
|
1
|
$ 50,647.00
|
$ 32,847.00
|
1998
|
$ 67,300.00
|
2
|
$ 67,347.00
|
$ 59,940.00
|
1999
|
$ 80,800.00
|
3
|
$ 80,847.00
|
$ 87,033.00
|
2000
|
$ 98,100.00
|
4
|
$ 98,147.00
|
$ 114,126.00
|
2001
|
$ 124,400.00
|
5
|
$ 124,447.00
|
$ 141,219.00
|
2002
|
$ 156,700.00
|
6
|
$ 156,747.00
|
$ 168,312.00
|
2003
|
$ 201,400.00
|
7
|
$ 201,447.00
|
$ 195,405.00
|
2004
|
$ 227,300.00
|
8
|
$ 227,347.00
|
$ 222,498.00
|
2005
|
$ 256,300.00
|
9
|
$ 256,347.00
|
$ 249,591.00
|
2006
|
$ 280,900.00
|
10
|
$ 280,947.00
|
$ 276,684.00
|
I)
The least square equation for Net sales
($) is, y’=a +bt=27039t + 5413
The
value 5413 is the estimated value of sales in the year 0 or base year (1996).
The
value 27039 tells us that sales increased at a rate of 27039 per year.
Thus
on the basis of past sales the estimated or expected or projected sales for
2010 will be
Y’= a+bt= 5413+27039*14
=383959
($) million
It seems in most fields, people have been willing to accept a situation where, out of every 20 positive results, chances are that one of them is a fluke and will not be reproducible. fengshui
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