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Case Study: (Sauce The Cayco Department Store suffered heayy damage when a hurricane struck on August 31. The store was closed for four months {September

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Case Study: (Sauce The Cayco Department Store suffered heayy damage when a hurricane struck on August 31. The store was closed for four months {September through Decem beri, and ll'layco is now inyolyed in a dispute with its insurance company about the amount of lost sales during the time the store was closed. Two ltey issues must be resolved: [ii the amount of sales l['Zayco would haye made if the hurricane had not struck and {2} whether Cayco is entitled to any compensation for excess sales due to increased business activity after the storm. More than $3 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses. The Excel file "Caycnxls has {1] Cavcu's sales data for the :13 months preceding the storm and {Ell the total sales for all department stores county-wide for the I18 months preceding the storm, as well as the total sales in the county forthe four months when the Cayco Department Store was closed. Cayco's managers have asked you to analyze these data and deyelop estimates of the lost sales at the anco Department Store for the months of September through December. They also asked you to determine whether a case can be made for excess storm-related sales during the same period. If such a case can be made, Cayco is entitled to compensation for excess sales it would haye earned in addition to ordinary sales. One possible explanation for excess sales would be that people had to replace real and personal property damaged by the storm. but this would need to be supported and quantified with your analysis ofthe data

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