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Question (2) The following table depicts the number of switches (in thousands) made at ABC plant during the past four years Year Switch 1 100 2 120 3 118 4 122 1) Forecast the number of switches to be made next year using linear regression. 2) Compute the mean squared error (MSE) when using linear regression.
Question 3 A company has to buy either machine A or machine B for its new production line. The cost of machine A (100,000 SR) is larger than the cost of machine B (60,000 SR), but unit production cost using machine A (4 SR) is smaller than unit production cost with machine B (5 SR).We know that the production volume of the new line is uncertain. It may be 40,000 units with probability equals (0.2), but it can be 20,000 with a probability (0.8). As industrial engineer what is the best decision?