Question
Please help me solve the problem using FORCASTING ANALYSIS. Please solve in Excel File with formula. Thank you. The company conducts annually their Business Review
Please help me solve the problem using FORCASTING ANALYSIS. Please solve in Excel File with formula. Thank you.
The company conducts annually their Business Review wherein the Sales Team presents their Sales Forecast for the next 3 years. The Sales Team for plantation accounts would like to forecast the sales of a fungicide for Cavendish banana in the next 3 years. Usually, the sales depend on Price, Advertising and Sales Expenses. However, the Sales Team are concerned what will happen to the Sales if the management of the company decided to reduce the Advertising and Sales Expenses. In order to help, we recommend to conduct Linear Regression in order to predict the sales for the next 3 years with the reduction in the budget for Advertising and Sales Expenses. We used historical data wherein we listed the previous sales data for the last 5 years.
Year |
Price (Php/Kg) |
Advertising (Php) | Sales Expenses (Php) |
Sales (Php in million) |
1 | 4,200 | 300,000 | 205,000 | 65 |
2 | 4,095 | 200,000 | 180,000 | 61 |
3 | 3,080 | 200,000 | 180,000 | 52 |
4 | 3,785 | 200,000 | 180,000 | 60 |
5 | 3,700 | 200,000 | 180,000 | 58 |
6 | 3,675 | 150,000 | 100,000 |
|
7 | 3,650 | 130,000 | 90,000 |
|
8 | 3,590 | 100,000 | 75,000 |
|
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