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You have been given data that represents quarterly sales in ($000's) of a Rad's Pizza delivery service for the first four years of their operation.

You have been given data that represents quarterly sales in ($000's) of a Rad's Pizza delivery service for the first four years of their operation. The company wants to use the partial Excel Summary Output and the Time Series data below to develop a regression equationand use seasonal indexes to estimate their sales. Note: time periods (t=1, 2, 3, ...)

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

67.4

2.470180883

27.28545

1.5413E-13

62.10198893

72.6980111

t

0.299

0.255460025

1.168595

0.262081145

-0.24937785

0.84643667

Quarter

Sales (Y)

t

Y/y hat

Year 1

Q1

65

0.960

Q2

70

1.029

Q3

66

0.966

Q4

76

1.108

Year 2

Q1

65

0.943

Q2

69

0.997

Q3

67

0.964

Q4

78

1.118

Year 3

Q1

67

0.956

Q2

69

0.980

Q3

68

0.962

Q4

77

1.085

Year 4

Q1

66

Q2

68

Q3

69

Q4

79

Required:

  1. Calculate theseasonal indexesto three decimal places, show your calculations. (6 marks)
  2. Forecast the sales for quarter 3 of year 5. (2 marks)

Question # 4 (7 marks)A manufacturing company makes two brands of a product (A and B). Each unit of brand A requires 2 hours of machine time for processing and 2 hours for finishing. Each unit of brand B requires 4 labor hours of machine time for processing and 2 hours for finishing. The maximum number of machine hours for processing and finishing are 180 and 100 respectively. The company has already secured orders of 30 units of brand A. In addition, the company makes a profit of $3.52 on each unit of brand A and $4.20 on each unit of brand B.Required:

  1. State the objective function and the constraints related to the above conditions. 3 marks
  2. Sketch the constraints to this linear programming problem, determine the points that make the feasible regionand theoptimal number of A and B. (show your calculations). 4 marks

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