View the step-by-step solution to:

# YEAR FUEL CONSUMPTION IN BILLIONS OF GALLONS 1990 105.37 1991 102.72 1992 106.56 1993 110.10 1994 112.19 1995 113.87 1996 116.77 1997 119.48 1998...

Please use bivariate linear regression to create a model to forecast passenger car and light truck tire shipments based upon domestic car and truck fuel consumption in the prior year. Based on the attached doc.

YEAR FUEL CONSUMPTION IN BILLIONS OF GALLONS 1990 105.37 1991 102.72 1992 106.56 1993 110.10 1994 112.19 1995 113.87 1996 116.77 1997 119.48 1998 122.36 1999 126.35 2000 126.21 2001 126.75 **CAR, LIGHT TRUCK, & MOTORCYCLE FUEL CONSUMPTION 1990-2001 **PASSENGER CAR & LIGHT TRUCK TIRE SHIPMENTS 1990-2001 YEAR SHIPMENTS IN MILLIONS OF CASINGS 1991 180.2 1992 192.1 1993 193.3 1994 200.2 1995 198.2 1996 208.2 1997 214.1 1998 221.3 1999 234.4 2000 242.0 2001 231.0 2002 290.9 **PROJECTED FUEL CONSUMPTION 2003-2006 (IN BILLIONS OF GALLONS) YEAR FORECAST CAR & TRUCK FUEL CONSUMPTION 2003 126.90 2004 127.13 2005 126.00 2006 127.11 Layton Rubber Products, Inc., manufacturers of the popular Road Ripper tire, is looking for a simple causal model to use in forecasting annual demand in millions of casings for passenger car and truck tires. Barbara Layton, Vice President of Marketing, has estimated that Layton Rubber Products will capture 12% of the passenger car tire market in terms of casings shipped. She reasons that tire demand is closely correlated to fuel consumption, and she would like to develop a sales forecasting model where the previous year’s fuel consumption would be used as a predictor variable for the demand for tires. The tables below present the data provided by the firm’s marketing analysts: A. Use bivariate linear regression to create a model to forecast passenger car and light truck tire shipments based upon domestic car and truck fuel consumption in the prior year . What this means is that you would use 1995 fuel consumption to forecast 1996 tire shipments. Write the model in the form, Y-hat= a + b(x). Compute the standard error of the estimate for your model.

Dear Student, It is a new... View the full answer

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents