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Sales Forecasting Exercise Growth Rate% 12 13 11 9 10 12.5 12 Given: Location 1 2 3 4 5 6 7 8 9 10 11

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Sales Forecasting Exercise Growth Rate% 12 13 11 9 10 12.5 12 Given: Location 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Projected 16 Population Income 300,000 42,000 315,000 43,000 320,000 44,000 311,000 40,000 310,000 41,000 323,000 42,000 326,000 44,000 327,000 45,000 329,000 45,000 331,000 46,000 338,000 47,000 343,000 48,000 341,000 51,000 337,000 52,000 339,000 49,000 Sales 350,000 355,000 358,000 348,000 346,000 350,000 356,000 357,000 363,000 370,000 380,000 390,000 410,000 415,000 390,000 11 10.5 9 8 7.5 7 7.5 11 11% 347,000 48,500 ***DO NOT USE MOVING AVERAGES 1. 2. 3. Forecast sales for location 16. Please note this is not a TIME SERIES - these are different locations (think dependent and independent variables). What is the upper and lower bound with a confidence interval of 95%? Are all of the regression coefficients significant? If not, what does this mean? Identify three other independent variables you would include in the above regression equation to increase the variance explained by the equation. Justify their inclusion and discuss the direction (positiveegative) of their influence on the dependent variable. 4. Sales Forecasting Exercise Growth Rate% 12 13 11 9 10 12.5 12 Given: Location 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Projected 16 Population Income 300,000 42,000 315,000 43,000 320,000 44,000 311,000 40,000 310,000 41,000 323,000 42,000 326,000 44,000 327,000 45,000 329,000 45,000 331,000 46,000 338,000 47,000 343,000 48,000 341,000 51,000 337,000 52,000 339,000 49,000 Sales 350,000 355,000 358,000 348,000 346,000 350,000 356,000 357,000 363,000 370,000 380,000 390,000 410,000 415,000 390,000 11 10.5 9 8 7.5 7 7.5 11 11% 347,000 48,500 ***DO NOT USE MOVING AVERAGES 1. 2. 3. Forecast sales for location 16. Please note this is not a TIME SERIES - these are different locations (think dependent and independent variables). What is the upper and lower bound with a confidence interval of 95%? Are all of the regression coefficients significant? If not, what does this mean? Identify three other independent variables you would include in the above regression equation to increase the variance explained by the equation. Justify their inclusion and discuss the direction (positiveegative) of their influence on the dependent variable. 4

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