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

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