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The number of internal disk drives? (in millions) made at a plant in Taiwan duri

ID: 2907992 • Letter: T

Question

The number of internal disk drives? (in millions) made at a plant in Taiwan during the past 5 years? follows:

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Year

Disk Drives

1

140

2

160

3

184

4

202

5

220

?a) Using simple linear regression?, the forecast for the number of disk drives to be made next year? = disk drives ?(round your response to one decimal? place).

b) The mean squared error (MSE) when using simple linear regression = ______ drives2(round your response to one decimal place).

c) The mean absolute percentage error (MAPE) when using simple linear regression = _____% (round your response to one decimal place).

Year

Disk Drives

1

140

2

160

3

184

4

202

5

220

Explanation / Answer

Variable

Coefficients

SE

t Stat

P-value

Intercept

120.60

2.13

56.56

0.00

Year

20.20

0.64

31.42

0.00

above is the linear Regression output from Excel .

1) forecast for the number of disk drives to be made next year= 120.6+20.20*(6) =241.8

2) mean squared error (MSE) is 4.1

3) Mean absolute percentage error (MAPE) using simple linear regression = 0.7%

minimum MAPE is better the MODEL

Variable

Coefficients

SE

t Stat

P-value

Intercept

120.60

2.13

56.56

0.00

Year

20.20

0.64

31.42

0.00