Management Science

Management Science

  1. SOUTHERN HORIZON AGRICULTURE SUPPLY (SHAS)

     The sales manager of SHAS intends to use sales of farm fertilizer to predict sales of farm tractor. He estimated a probable six-week lag between fertilizer sales and tractor sales. The pertinent data are:

Period Fertilizer Sales (tons) Number of tractor sold

(six-week lag)

1 1.6 10
2 1.3 8
3 1.8 11
4 2.0 12
5 2.2 12
6 1.6 9
7 1.5 8
8 1.3 7
9 1.7 10
10 1.2 6
11 1.9 11
12 1.4 8
13 1.7 10
14 1.6 9

 

  1. Determine the correlation between the two variables. Does it appear that the relationship between these variables will yield good predictions? Explain.
  2. Obtain a linear regression line for the data.

 

  1. Predict expected tractor sales on the 15thperiod given fertilizer sales six weeks earlier of 2.5 tons.