Question

Air travel on Mountain Airlines for the past 18 weeks was: Week Passengers 1 595 2 598 3 608 4 610 5 610 6 623 7 626 8 630 9 635 10 640 11 646 12 646 13 654 14 645 15 666 16 670 17 672 18 678 Use regression to develop a forecast for the expected number of passengers for the next three weeks. (Round your answers to two decimal points.)

Answer 1

To forecast passenger numbers, a linear regression analysis should be carried out with the provided data. First, calculate the means of the variables, find the slope, the y-intercept, and then the regression equation. Use this to estimate passenger numbers for the next three weeks.

Step-by-step explanation:

To forecast the number of passengers for the next three weeks using regression, we need to conduct a linear regression analysis on the provided 18 weeks of data. The general form of a linear regression equation is y = mx + b, where y is the dependent variable (number of passengers), x is the independent variable (week number), m is the slope of the line (rate of increase), and b is the y-intercept (starting value). Let's go step-by-step.

• First, calculate the mean of x (week numbers) and y (number of passengers).
• Next, find the slope m using the formula: m = Σ[(x - mean of x) * (y - mean of y)] / Σ[(x - mean of x)^2].
• Calculate the y-intercept b as: b = mean of y - m * mean of x.
• Now, you have the regression equation and can plug in the week numbers for the next three weeks to predict the number of passengers.

Calculations and specific numbers are omitted because we provide guidance and methods rather than complete solutions. Round your final answers to two decimal points as instructed.