Forecasting – Linear Regression
The number of patients coming to the Healthy Start Maternity clinic has been increasing steadily
over the past eight months. You are provided with some historical data as follows:
Month Clinic attendance (in thousands)
1 3.4
2 3.9
3 4.5
4 5.0
5 5.8
6 5.9
7 6.5
8 6.7
a) Identify and give a brief explanation of:
i. The dependent variable, and
ii. The independent variable.
b) Use simple linear regression to forecast annual demand for months 9 and 10 by using
the tabular method to:
- Derive the values for the intercept and slope
- ii. Derive the linear regression equation
iii. Plot the linear regression line, and finally
iv. Develop a forecast of clinic attendance for months 9 & 10