The Total Number of Overtime Hours (In 1000s) Worked in a Large

question 75

Essay

The total number of overtime hours (in 1000s) worked in a large steel mill was recorded for 16 quarters, as shown below. $$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Quarter } & \text { Overtime hours } \\\hline 2007 & 1 & 20 \\& 2 & 30 \\& 3 & 28 \\& 4 & 20 \\ { 2008 } & 1 & 24 \\& 2 & 34 \\& 3 & 28 \\& 4 & 21 \\{ 2009 } & 1 & 28 \\& 2 & 38 \\& 3 & 31 \\& 4 & 26 \\2010& 1 & 30 \\& 2 & 41 \\& 3 & 35 \\& 4 & 28 \\\hline\end{array}$$ a. Use the regression technique to calculate the linear trend line.
b. Calculate the seasonal indexes based on the regression trend line in part (a).
c. What do the seasonal indexes tell us?

---

Definitions:

Physical Differences

Variations in the material, size, weight, or other physical properties of products or entities.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to change.

Product Differentiation

The method of differentiating a product or service from its competitors to enhance its appeal to a specific target audience.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on factors other than price.