Question

Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2019. The relevant quarterly data for the previous three years follow:

2016 Return 2017 Return 2018 Return
Quarter Expenses Quarter Expenses Quarter Expenses
1 $13,900 1 14,300 1 $14,800
2 12,600 2 13,400 2 13,700
3 12,900 3 13,000 3 13,500
4 15,200 4 15,600 4 16,300
The result of a simple regression analysis using all 12 data points yielded an intercept of $13,154.55 and a coefficient for the independent variable of $145.45. (R-squared = 0.44, SE= $974).
Required:
Plot the data in the order of the dates.

Answer 1

See the attached files for the plot of the data.

Step-by-step explanation:

In the attached files:

(1) Quarters is on the horizontal axis.

(2) Return Expenses is on the vertical axis.

From the two attached files, the picture shows the required plot required while the excel file is meant to give the student an additional information on how the graph is done.