Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following demand data for a certain product over four quarters in 2019 and four quarter in 2020. ( The data can be directly

Consider the following demand data for a certain product over four quarters in 2019 and four quarter in 2020. (The data can be directly copied into Excel.)

Period Quarter Demand
1 2019 Q1 830
2 2019 Q2 1050
3 2019 Q3 930
4 2019 Q4 770
5 2020 Q1 740
6 2020 Q2 930
7 2020 Q3 810
8 2020 Q4 680

We have noticed a seasonal pattern in the data and thus decided to use a cycle decomposition technique with multiplicative seasonality to forecast the trend into 2021, i.e., periods 9 through 12.

a) The seasonal factor for Q3 is [ Select ] ["1.09", "1.03", "0.96", "0.92"] .

b) The deseasonalized demand in Q2 of 2020 (Period 6) is [ Select ] ["791", "974", "1392", "888"] .

c) Based on the linear regression of the deseasonalized data, the deseasonalized forecast for Q4 of 2021 is [ Select ] ["777", "1030", "844", "693"] .

d) The correlation coefficient of [ Select ] ["-0.81", "-0.87", "0.87", "0.81"] for the regression shows a(n) [ Select ] ["decreasing", "increasing"] demand trend and a relatively [ Select ] ["strong", "weak"] fit (predictive power).

e) The forecast including trend and seasonality (FITS) for Q1 of 2021 is [ Select ] ["1016", "1152", "701", "921"] .

f) The four-period moving-average forecast for Q1 of 2021 equals [ Select ] ["945", "790", "995", "886"] and [ Select ] ["overestimates", "underestimates"] the FITS for the same period.

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

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

Recommended Textbook for

Leading The Digital Workforce Internal Audit And IT Audit

Authors: Jeffrey W. Brown

1st Edition

1032323736, 978-1032323732

More Books

Students also viewed these Accounting questions

Question

What is management growth? What are its factors

Answered: 1 week ago