Question
Suppose a company has the following sales for the last six months (January – June): Month...
Suppose a company has the following sales for the last six months (January – June):
| Month | Period | Sales |
| January | 1 | 16 |
| February | 2 | 25 |
| March | 3 | 20 |
| April | 4 | 20 |
| May | 5 | 31 |
| June | 6 | 35 |
| July | 7 | 26 |
| August | 8 | (a) |
Use this information to answer the following 7 questions:
ques 1 given the information above
6.Using January through July values, develop a linear trend equation for this time series (to 4 decimals). Please write the equation in the proper form.
7.Using your answer from (7), what is the average change in sales per month for this company (to 2 decimals)?
Homework Answers
Answer #1
(6)
From the given data, the following Table is calculated:
| X | Y | XY | X2 |
| 1 | 16 | 16 | 1 |
| 2 | 25 | 50 | 4 |
| 3 | 20 | 60 | 9 |
| 4 | 20 | 80 | 16 |
| 5 | 31 | 155 | 25 |
| 6 | 35 | 210 | 36 |
| 7 | 26 | 182 | 49 |
| Total = 28 | 173 | 753 | 140 |
Linear Trend Equation for this Time Series is given by:
(7)
The average change in sales per month for this company = Slope = 2.18
Not the answer you're looking for?
Similar Questions
Suppose a company has the following sales for the last six months (January – June): Month...
Suppose a company has the following sales for the last six
months (January – June):
Month
Period
Sales
January
1
16
February
2
25
March
3
20
April
4
20
May
5
31
June
6
35
July
7
26
August
8
(a)
Use this information to answer the following 7
questions:
ques 1 given the information above
1.Use exponential smoothing (a= 0.10) to forecast the sales for
August (to 2 decimals). What is the value?
2. Compute the MSE for...
Suppose a company has the following sales for the last six months (January – June): Month...
Suppose a company has the following sales for the last six
months (January – June):
Month
Period
Sales
January
1
16
February
2
25
March
3
20
April
4
20
May
5
31
June
6
35
July
7
26
August
8
(a)
Use this information to answer the following 7
questions:
6.Using January through July values, develop a linear trend
equation for this time series (to 4 decimals). Please write the
equation in the proper form.
7.Using your answer from...
Watt’s Lighting Stores made the following sales projection for the next six months. All sales are...
Watt’s Lighting Stores made the following sales projection for
the next six months. All sales are credit sales.
March
$43,000
June
$47,000
April
49,000
July
55,000
May
38,000
August
57,000
Sales in January and February were $46,000 and $45,000,
respectively. Experience has shown that of total sales, 10 percent
are uncollectible, 35 percent are collected in the month of sale,
45 percent are collected in the following month, and 10 percent are
collected two months after sale.
a. Prepare a...
The monthly sales for Yazici Batteries, Inc., were as follows: MONTH SALES January 20 February 21...
The monthly sales for Yazici Batteries, Inc., were as
follows:
MONTH
SALES
January
20
February
21
March
15
April
14
May
13
June
16
July
17
August
18
September
20
October
20
November
21
December
23
Plot the monthly sales data.
Forecast January sales using each of the following:
Naive method.
A 3-month moving average.
A 6-month weighted average using .1, .1, .1, .2, .2, and .3,
with the heaviest weights applied to the most recent months.
Exponential smoothing using...
Watt’s Lighting Stores made the following sales projection for the next six months. All sales are...
Watt’s Lighting Stores made the
following sales projection for the next six months. All sales are
credit sales.
March............................... $35,000
April................................. 41,000
May.................................. 30,000
June................................. 39,000
July................................... 47,000
August.............................. 49,000
Sales in January and February were
$38,000 and $37,000, respectively.
Experience has shown that of total
sales, 10 percent are uncollectible, 30 percent are collected in
the month of sale, 40 percent are collected in the following month,
and 20 percent are collected two months after sale.
Prepare a monthly cash
receipts schedule for the firm...
The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $130,000 June...
The sales budget for Perrier Inc. is forecasted as follows:
Month
Sales Revenue
May
$130,000
June
150,000
July
200,000
August
130,000
To prepare a cash budget, the company must determine the
budgeted cash collections from sales. Historically, the following
trend has been established regarding the cash collection of
sales:
60 percent in the month of sale.
20 percent in the month following sale.
15 percent in the second month following sale.
5 percent uncollectible.
The company gives a 2 percent...
2. The sales forecast for Moss follows: January = 5,000 February = 5,200 March = 5,600...
2. The sales forecast for Moss follows:
January = 5,000
February = 5,200
March = 5,600
April = 6,000
May = 6,500
June = 7,000
July = 7,500
August = 7,000
(i). Company policy is to keep a target ending inventory of 20%
of the next month’s sales. Prepare a production budget for April,
may and June.
(ii). Using the information from part (i), prepare a labor usage
and purchases budget. It requires 3 hours at $18 per hour.
PROBLEM: Calculating demand for hot tubs MONTH DEMAND January 4 February 7 March 11 April 7...
PROBLEM: Calculating demand
for hot tubs
MONTH
DEMAND
January
4
February
7
March
11
April
7
May
14
June
15
a.
Using a simple three-month moving average, find the July
forecast.
b. Using a weighted
moving average with weights of .60, .30, and .10, find the July
forecast. (NOTE: In your calculations, apply the highest weight
to the most recent month and so forth, middle weight to the middle
month, and lowest weight to the farthest month back.)
c.
Using...
Demand for oil changes at? Garcia's Garage has been as? follows: ??????????????????????????????????????????????????????????????? Month Number of Oil...
Demand for oil changes at? Garcia's Garage has been as? follows:
???????????????????????????????????????????????????????????????
Month Number of Oil Changes January 48 February 43 March 49
April 51 May 57 June 58 July 62 August 67
a. Use simple linear regression analysis to develop a
forecasting model for monthly demand. In this? application, the
dependent? variable, Y, is monthly demand and the independent?
variable, X, is the month. For? January, let Xequals=?1; for?
February, let Xequals=?2; and so on. The forecasting model is...
ABC Company has budgeted sales for the next six months as follows: Budgeted Sales in Units...
ABC Company has budgeted sales for the next six months as follows:
Budgeted Sales in Units
March 13,000 units
April 28,000 units
May 36,000 units
June 12,000 units
July 42,000 units
August 69,000 units
ABC Company sells its inventory to customers for $20 per unit.
30% of the company's sales are cash sales and the other 70% of
sales are made on account. The sales on account are collected
in the pattern:
35% collected in the month of sale
26%...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 12 minutes ago
asked 24 minutes ago
asked 29 minutes ago
asked 37 minutes ago
asked 41 minutes ago
asked 43 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago