Question: Trevor Harty, an avid mountain biker, always wanted to start a business selling top-of-the-line mountain bikes and other outdoor supplies. A little over 6 years

Trevor Harty, an avid mountain biker, always wanted to start a business selling top-of-the-line mountain bikes and other outdoor supplies. A little over 6 years ago, he and a silent partner opened a store called Hale and Harty Trail Bikes and Supplies. Growth was rapid in the first 2 years, but since that time, growth in sales has slowed a bit, as expected. The quarterly sales (in $1,000s) for the past 4 years are shown in the table below:

(a) Develop a trend line using the data in the table. Use this to forecast sales for each quarter of year 5. What does the slope of this line indicate?
(b) Use the multiplicative decomposition model to incorporate both trend and seasonal components into the forecast. What does the slope of this line indicate?
(c) Compare the slope of the trend line in part a to the slope in the trend line for the decomposition model that was based on the deseasonalized sales figures. Discuss why these are so different and explain which one is best touse.

YEAR 1 QUARTER 274 QUARTER 2 172 QUARTER 3 130 QUARTER 4 162 YEAR 2 282 178 136 168 YEAR 3 282 182 134 170 YEAR 4 296 210 158 182

Step by Step Solution

★★★★★

3.31 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Using computer software we get Y 1975 034 X where X time period The slope is 034 which indicates a small negative trend Note that the results are no... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

162-M-S-F (66).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

Bryce Publishing Co. prepares income statements segmented by divisions, but the chief operating officer is not certain about how the company is actually performing. Financial data for the year follow...

Jackie wants to start a business selling skateboards. She doesnt have a lot of money to purchase much other than the skateboards themselves. She doesnt plan to rent a building or even an offi ce. She...

You want the new top of the line mobile phone. Which is a better option? Option 1: You purchase the phone for $929 plus 12% taxes and you keep your monthly phone service plan. You currently pay $55...

5-35 Trevor Harty, an avid mountain biker, always wanted to start a business selling top-of-the-line mountain bikes and other outdoor supplies. A little over 6 years ago, he and a silent partner...

:5-37 Trevor Harty, an avid mountain biker, always wanted to start a business selling top-of-the-line mountainbikes and other outdoor supplies. A little over 6 years ago, he and a silent partner...

See the Common Decision Making Criteria PDFDownload Common Decision Making Criteria PDF for examples of criteria you can use What are the criteria we should consider in this case? How can we measure...

a.What is the difference between buying behavior of Nadia and Miguel ? Explain your answer. b. When did the Need recognition occur for Jorge ? Explain. c. What are the considerations for buying bike...

What might explain low levels of employee satisfaction in recent years?

The Brad's Farm Company uses the retail inventory method to compute ending inventory. Information for last year is as follows: Beginning inventory Net markups Purchases Freight-in Purchase returns...

Prove that the curvature o f vec ( c ) ( s ) i s bounded from below b y the reciprocal o f the radius o f the sphere, i . e . , ( s ) 1 R , for every s i n I And also show that equality ( s ) = 1 R...

[1] 3moles of an ideal diatomic gas are at one atmosphere and 300K. a) Which method of compression to half the original volume requires the highest pressure: isothermal, adiabatic, constant pressure...

Indicate whether the statements are correct or not. Justify your answer. a) The average temperature of the human body is 36.5, which is equivalent to 110 K. b) Density is a derived quantity, since...

Calculate the pH of the following solutions (<5% error): a) HF 0.01 M. b) NH4Cl 0.01 M. c) 0.01 M ammonium acetate.

Calculate the pH of the following solutions : a) HF 0.01 M. b) NH4Cl 0.01 M. c) 0.01 M ammonium acetate.

For the reduction of citral using Diludine as a hydride source, an equivalent of pyridine will be generated as a side-product, which you are asked to isolate and analyze. Propose a short game plan on...

E-mails A university teacher saved every e-mail received from students in a large introductory statistics class during an entire term. He then counted, for each student who had sent him at least one...

= (a) Find the average number of moviegoers waiting in line to purchase a ticket.

=12-13 Mike Dreskin manages a large Los Angeles movie theater complex called Cinema I, II, III, and IV. Each of the four auditoriums plays a different film; the schedule is set so that starting times...

= (d) What is the probability that more than one machine is in the system? Probability that more than two are broken and waiting to be repaired or being serviced? More than three? More than four?

Question 4 (1 point) One reason so few futures contracts are used for the actual delivery of the underlying asset is that most participants are speculators; they don't need the asset spot prices are...

A group of 35 tourists can choose between visiting the Aero Space Museum of Calgary (A), the Calgary Zoo (Z), or the Glenbow Museum (G). . 18 went to the Aero Space Museum, 21 went to the zoo, and 23...

The following table depicts how an investor averages out the unit trust price along the year 2019 by investing on a fixed and monthly basis amidst the price fluctuations. Unit price RM0.61 RMO.53...