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Demand for Bike
Question 1

The graph shows that the demand data was changing from one month to the other.
Therefore, step to step analysis if the graph is like below: 1. In January, it is clear that in all the
years, the demand was the almost same. 2. In February as compared to the other months, the
demand was lower than the other months. Besides, 2008 has low demand as compared to the
other years. 3. March, the demand was also low with 2011, showing the biggest hike in the data
demand. This meant that there was an increase in the demand for data as years moved from 2008
to 2011. 4. In April, there was a slight increase in the data demand with 2010 having the highest
demand of data. However, there was a decrease of data in 2014. 5. The demand changed in May
with a steady increase in demand from 2008 to 2011. 6. The same is taking place in June as well

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as in July. It is clear that the data started to change as from August. The demand changed in a
negative direction as indicated in the graph. This took place all through to December. June and
July of 2011 were the time the demand were very high.
Generally, it is evident that the number of demand for bikes in 2011 was higher as
compared to all the other years. It is clear that 2008 and 2009 had the lowest demand for the
bikes. The sudden negative change in demand was evident from August to December. 2010 is
considered as a year that most value met the demand expected for Jan. as a business person, the
year had the best demand in 2010 and 2011, from January to July. Besides, there is high demand
for bikes from January to July and low demand from August to December. The month with the
highest demand is June in all the years. Therefore, the demand of bike can be seen as seasonal in
Question 2
Methodology 1 Simple linear regression using least squares method is considered as the
best among the two options available. The reason why it is vital to use this methodology is
because it creates value for the demand. The methodology has values close to the expected value
as compared to methodology 2 whose value and far away from the real values. On the other
hand, the decision that led to the choice of methodology one is because is supports better demand
value analysis such as forecast for more months as indicated in the excel file.
Question 3
It is evident that multiple regression models is the best way that Jan could use to determine the
forecast for the demand of the bikes because it not only gives an actual demand but also sets
anticipated challenges. The independent variable that is to be selected is cost of the bike. This is
the best variable because it is dependent on the demand for the bikes. The other reason it is

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important for the study is that it determine the demand slope that is used in forecasting. The other
variable that will be used in the model is a supply of bikes in the market at the time of the
analysis. The two are considered as mobile independent variables because they change with time.