Final answer:
To predict sales on a given day, substitute the day number into the regression equation (ŷ = 101.32 + 2.48x). For day 60, the predicted sales are $250,120, and for day 90, the sales are predicted to be $324,520. This approach aids in determining appropriate inventory levels based on sales predictions.
Step-by-step explanation:
To predict the sales for a given day using the provided regression model, we simply need to substitute the day number into the equation. The model given is ŷ = 101.32 + 2.48x, where ŷ is in thousands of dollars, and x is the day number within the 90-day period.
Day 60 Prediction
For day 60, we input 60 in place of x and calculate:
- ŷ = 101.32 + 2.48(60)
- ŷ = 101.32 + 148.80
- ŷ = 250.12
So, the predicted sales on day 60 are $250,120.
Day 90 Prediction
Similarly, for day 90, we calculate:
- ŷ = 101.32 + 2.48(90)
- ŷ = 101.32 + 223.20
- ŷ = 324.52
Therefore, the predicted sales on day 90 are $324,520.
By using this model, businesses can make informed decisions about their inventory levels by ensuring they stock enough products to meet the predicted sales.