Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

0 Required information [The following information applies to the questions displayed below.) Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became

image text in transcribed
image text in transcribed
image text in transcribed
0 Required information [The following information applies to the questions displayed below.) Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2019. The relevant quarterly data for the previous three years follow: 2016 Quarter 1 2 3 4 Return Expenses $ 12,500 11,300 11,600 13,700 2017 Quarter 1 2. 3 4 Return Expenses $ 12,900 12,100 11,700 14,000 2018 Quarter 1 2. 3 4 Return Expenses $ 13,300 12,300 12,100 14,600 The result of a simple regression analysis using all 12 data points yielded an intercept of $11,854.55 and a coefficient for the independent variable of $126.22. (R-squared = 0.19, SE = $974.89.) 2. Looking at the graph you prepared for requirement 1, select two representative data points and calculate the quarterly forecast for 2019 using the high-low method. 3. Calculate the quarterly forecasts for 2019 using the results of a regression analysis. Evaluate the results of the regression analysis and make appropriate changes to improve the model. thin the holoser the independent variable of $126.22. (R-squared = 0.19, SE = $974.89.) 2. Looking at the graph you prepared for requirement 1, select two representative data points and calculate the quarterly forecast for 2019 using the high-low method. 3. Calculate the quarterly forecasts for 2019 using the results of a regression analysis. Evaluate the results of the regression analysis and make appropriate changes to improve the model. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Looking at the graph you prepared for requirement 1, select two representative data points and calculate the quarterly forecast for 2019 using the high-low method. 2019 Quarter Return Expenses es 1 2. 3 4 Regleda Required 3 > Complete this question by entering your answers in the tabs below. Required 2 Required 3 Calculate the quarterly forecasts for 2019 using the results of a regression analysis. Evaluate the results of the regression analysis and make appropriate changes to improve the model. (Do not round intermediate calculations. Round your final answers to two decimal places.) Regression One Predicted 2019 Quarter Expenses 1 2 3 4 Regression TWO 2019 Quarter Predicted Expenses 1 2 3 4 Complete this question by entering your answers in the tabs below. Required 2 Required 3 Calculate the quarterly forecasts for 2019 using the results of a regression analysis. Evaluate the results of the regression analysis and make appropriate changes to improve the model. (Do not round intermediate calculations. Round your final answers to two decimal places.) Regression One Predicted 2019 Quarter Expenses 1 2 3 4 Regression TWO 2019 Quarter Predicted Expenses 1 2 3 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th Edition

1118725786, 978-1118725788

More Books

Students also viewed these Accounting questions

Question

What research interests does the faculty member have?

Answered: 1 week ago