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Question

The Microprocessor data shows the demand for one type of chip used in industrial equipment from

a small manufacturer.

.

Construct a chart of the data. What appears to happen when a new chip is introduced?

Develop a regression model to forecast demand that includes both time and the introduction

of a new chip as explanatory variables.

• What would the forecast be for the next month if a new chip is introduced? What would it

be if a new chip is not introduced?

Fig: 1