Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2) (20%) Assume last year's (2019) monthly sales figures for a business were: (20%) The management team for the company in question 2 is concerned

image text in transcribedimage text in transcribed

2) (20\%) Assume last year's (2019) monthly sales figures for a business were: (20\%) The management team for the company in question 2 is concerned about seasonal sales trends for the business and would like to compare its regular regression forecast to a seasonally adjusted forecast. At the end of 2020, it has recorded the following actual sales: a. Based on the sales data for 2019 and 2020, develop a new linear regression equation for predicting long-term sales. Write the regression equation in the appropriate form. b. Using the regression equation, generate the regression sales forecast figures for each month of 2019 and 2020. c. Generate the regression sales forecast figures for each month of the following year (2021). d. Calculate the seasonal ratio for each month of 2019 and 2020 (round to 4 decimal places). e. Calculate the seasonal ratio for each month of 2021 by averaging the same respective months from the previous two years (round to 4 decimal places). f. Calculate the seasonal forecast for all 36 months. 2) (20\%) Assume last year's (2019) monthly sales figures for a business were: (20\%) The management team for the company in question 2 is concerned about seasonal sales trends for the business and would like to compare its regular regression forecast to a seasonally adjusted forecast. At the end of 2020, it has recorded the following actual sales: a. Based on the sales data for 2019 and 2020, develop a new linear regression equation for predicting long-term sales. Write the regression equation in the appropriate form. b. Using the regression equation, generate the regression sales forecast figures for each month of 2019 and 2020. c. Generate the regression sales forecast figures for each month of the following year (2021). d. Calculate the seasonal ratio for each month of 2019 and 2020 (round to 4 decimal places). e. Calculate the seasonal ratio for each month of 2021 by averaging the same respective months from the previous two years (round to 4 decimal places). f. Calculate the seasonal forecast for all 36 months

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Finance questions