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Mgt 2070 Assignment 5 – Solutions

7.13 River Road Medical Clinic, which runs an optical lab, experienced substantial growth over the last decade. It purchased additional increments of lens-grinding equipment in relatively small units. Prior analysis of its data (since its growth has been steady and constant) suggests that regression analysis (as described in chapter 4) is adequate to determine its capacity demands. Data for the past decade follow:

|Year |1991 |1992 |1993 |1994 |

|1991 |1 |15.00 |1 |15.00 |

|1992 |2 |15.50 |4 |31.00 |

|1993 |3 |16.25 |9 |48.75 |

|1994 |4 |16.75 |16 |67.00 |

|1995 |5 |16.90 |25 |84.50 |

|1996 |6 |17.24 |36 |103.44 |

|1997 |7 |17.50 |49 |122.50 |

|1998 |8 |17.30 |64 |138.40 |

|1999 |9 |17.75 |81 |159.75 |

|2000 |10...