Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For a large retailer, the plot below gives quarterly sales for the first quarter of 1998 through the last quarter of 2002 in millions of
For a large retailer, the plot below gives quarterly sales for the first quarter of 1998 through the last quarter of 2002 in millions of dollars. 3500 2500 Sales 1500 500 Quarta 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Year 1998 1999 2000 2001 2002 Using regression software, the trend component for this series is: Sales = 1322 +50.7x. The seasonality factors are calculated to be 0.77, 0.58, 0.84, and 1.80 for the first, second, third, and fourth quarters, respectively. The average of these seasonality factors is 0.9975. Thus, the seasonality factor of 1.80 for the fourth quarter indicates that fourth-quarter sales: O A. are typically 80% higher than third-quarter sales. O B. are typically 80% above the average for all four quarters. O C. are typically 1.8 times third-quarter sales. O D. have 1.8 times the variability of other quarters. For a large retailer, the plot below gives quarterly sales for the first quarter of 1998 through the last quarter of 2002 in millions of dollars. 3500 2500 Sales 1500 500 Quarta 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Year 1998 1999 2000 2001 2002 Using regression software, the trend component for this series is: Sales = 1322 +50.7x. The seasonality factors are calculated to be 0.77, 0.58, 0.84, and 1.80 for the first, second, third, and fourth quarters, respectively. The average of these seasonality factors is 0.9975. Thus, the seasonality factor of 1.80 for the fourth quarter indicates that fourth-quarter sales: O A. are typically 80% higher than third-quarter sales. O B. are typically 80% above the average for all four quarters. O C. are typically 1.8 times third-quarter sales. O D. have 1.8 times the variability of other quarters
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started