Issac Palanca, the General Manager of Orbit Group, Thinks That

question 69

Short Answer

Issac Palanca, the general manager of Orbit group, thinks that his firm's engineering services contracted to highway construction firms are directly related to the volume of highway construction business contracted with companies in his geographic area. He wonders if this is really so, and if it is, can this information help him plan his operation better by forecasting the quantity of his engineering services required by construction firms in each quarter of the year? The table below presents the sales of his services and the total amounts of contracts for highway construction over the last eight quarters:
$$\begin{array} { | c | c | c | } \hline \text { Quarter } & \text { Sales } & \begin{array} { c } \text { Contracts } \\\text { Released }\end{array} \\\hline 1 & 8 & 153 \\\hline 2 & 10 & 172 \\\hline 3 & 15 & 197 \\\hline 4 & 9 & 178 \\\hline 5 & 12 & 185 \\\hline 6 & 13 & 199 \\\hline 7 & 12 & 205 \\\hline 8 & 16 & 226 \\\hline\end{array}$$
A) Using this data, develop a regression equation for predicting the level of demand of Orbit group's services.
B) Determine the coefficient of correlation and the standard error of the estimate.

• A) Using this data, develop a regression equation for predicting the level of demand of Orbit group's services.
• B) Determine the coefficient of correlation and the standard error of the estimate.

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Definitions:

Conform to Contract

The requirement that goods or services supplied under a contract must meet the specifications agreed upon in the contract.

Substitute Goods

Products or services that can be used in place of one another, offering consumers alternatives.

Risk of Loss

Risk of loss refers to the legal and financial responsibility for damages, destruction, or loss of property, often determining who bears this risk during transactions or in the event of unforeseeable incidents.

Good Faith

Good faith refers to an honest intention to act without taking advantage of another person or to fulfill one's obligations or agreements.