Question

A company is interested in forecasting sales in the final quarter of the year based on the first three quarters by fitting a linear regression model.

sales | quarter |

227 | 1 |

287 | 2 |

316 | 3 |

what is the proportion of the variability in sales can be explained by this model?

predict the sales for the fourth quarter

Answer #1

A company is interested in forecasting sales in the final
quarter of the year based on the first three quarters by fitting a
linear regression model.
Sales
170
243
297
Quarter
1
2
3
Firstly, what proportion of the variability in sales can be
explained by the model?
Secondly, predict the sales for the fourth quarter.

The owner of a movie theater company used multiple regression
analysis to predict gross revenue (y) as a
function of television advertising
(x1) and newspaper
advertising (x2). The
estimated regression equation was
ŷ = 83.8 + 2.26x1 +
1.50x2.
The computer solution, based on a sample of eight weeks,
provided SST = 25.8 and SSR = 23.385.
(a) Compute and
interpret R2 and
Ra2.
(Round your answers to three decimal places.)
The proportion of the variability in the dependent variable that
can be...

16. For the first quarter of the year, a company has projected
sales of $3,435. Sales in the subsequent quarters are projected to
increase at 10.74% per quarter. The company has a payables period
of 52 days. The company purchases inventory in each quarter equal
to 36% of projected sales for the following quarter. Assuming a
quarter equals 90 days, how much total cash payments are made in
the first quarter for inventory purchases?

Monette Motors is a chain of car dealerships. Sales in the
fourth quarter of last year were $4,100,000. Suppose management
projects that its current year's quarterly sales will increase by
6% in quarter 1, by another 5% in quarter 2, by another 7% in
quarter 3, and by another 3%in quarter 4. Management expects cost
of goods sold to be 45% of revenues every quarter, while operating
expenses should be 30% of revenues during each of the first two
quarters,...

The owner of a movie theater company used multiple regression
analysis to predict gross revenue (y)
as a function of television advertising
(x1) and newspaper advertising
(x2). The estimated regression
equation was
ŷ = 82.5 + 2.26x1 +
1.30x2.
The computer solution, based on a sample of eight weeks,
provided SST = 25.3 and SSR = 23.415.
(a)Compute and interpret R2
and Ra2.
(Round your answers to three decimal places.)
The proportion of the variability in the dependent variable that...

The sales budget for your company in the coming year is based on
a quarterly growth rate of 20 percent with the first-quarter sales
projection at $226.3 million. In addition to this basic trend, the
seasonal adjustments for the four quarters are 0, −$17.3, −$9.3,
and $22.3 million, respectively. Generally, 50 percent of the sales
can be collected within the quarter and 45 percent in the following
quarter; the rest of the sales are bad debt. The bad debts are...

The owner of a movie theater company used multiple regression
analysis to predict gross revenue (y) as a
function of television advertising
(x1) and newspaper advertising
(x2).The estimated regression equation
was
ŷ = 83.1 + 2.23x1 +
1.30x2.
The computer solution, based on a sample of eight weeks,
provided SST = 25.4 and SSR = 23.395.
(a) Compute and interpret R2 and
Ra2.
(Round your answers to three decimal places.)
The proportion of the variability in the dependent variable that...

A company is formulating its marketing expense budget for the
last quarter of the year. Sales in units for the third quarter
amounted to 3,400; sales volume for the fourth quarter is expected
to increase by 10%. Variable marketing expense per unit sold amount
to approximately $0.15, paid in cash in month of sale. Fixed
marketing expense per month amount to $8,500 of salaries, $3,750 of
depreciation (delivery trucks), and $1,700 of insurance (paid
monthly).
a. What is the total...

A company is formulating its marketing expense budget for the
last quarter of the year. Sales in units for the third quarter
amounted to 3,600; sales volume for the fourth quarter is expected
to increase by 10%. Variable marketing expense per unit sold amount
to approximately $0.20, paid in cash in month of sale. Fixed
marketing expense per month amount to $9,000 of salaries, $4,000 of
depreciation (delivery trucks), and $1,800 of insurance (paid
monthly).
a. What is the total...

Savings-Mart (a chain of discount department stores) sells patio
and lawn furniture. Sales are seasonal, with higher sales during
the spring and summer quarters and lower sales during the fall and
winter quarters. The company developed the following quarterly
sales forecasting model:
Yˆt=9.50+0.600t−2.75D1t+0.25D2t+3.5D3tY^t=9.50+0.600t−2.75D1t+0.25D2t+3.5D3t
where
YˆtY^t
= =
predicted sales (in millions of dollars) in
quarter tpredicted sales (in millions of dollars) in quarter t
9.509.50
= =
quarterly sales (in millions of dollars) when
t = 0quarterly sales (in millions...

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