Question: Infoworks is a discount computer store. Infoworks has collected data on computer and printer sales for the past 10 years as follows.

1. Develop a linear trend line forecast to forecast printer demand in year 11

   	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
   Intercept	298.1333	62.80307	4.747114	0.001451	153.3091	442.9576
   Year	34.13939	10.12163	3.372914	0.009743	10.79886	57.47993

   
   This means that the regression model is
   \[\text{Printers}=298.1333+34.13939\,t\]
   For t = 11, we get
   \[\text{Printers}=298.1333+34.13939\times 11=673.6667\approx 674\]
2. Develop a linear regression model relating printer sales to computer sales to forecast printer demand in year 11 if 1300 computers are sold.

   	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
   Intercept	74.76874578	197.4138886	0.378741	0.714734	-380.469	530.0063
   Computers	0.343841477	0.162301617	2.118534	0.066978	-0.03043	0.71811

   
   This means that the regression model is
   \[\text{Printers}=74.7687+0.34384\text{ Computers}\]
   If the computer sales are 1,300, we get
   \[\text{Printers}=74.7687+0.34384\times 1,300=521.763\approx 522\]
3. Compare the two forecasts developed above and indicate which you think is more accurate. Why?

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