5. For this question, read the Project Guidelines for Chapter 4 and 7. A firm re
ID: 1163323 • Letter: 5
Question
5. For this question, read the Project Guidelines for Chapter 4 and 7. A firm recorded its sales (Qt) in monthly observations from January 2013 to August 2014. The data collected is shown in the table below: Sales ($ Thousands)
Qt
Jan-13
46
Feb-13
56
Mar-13
72
May-13
67
Jun-13
77
Aug-13
66
Sep-13
69
Oct-13
79
Dec-13
88
Jan-14
91
Mar-14
94
Apr-14
104
Jun-14
100
Jul-14
113
Aug-14
120
a. Below is the output:
b. The intercept (a) is 46.57. It tells us the value of Sales that is not dependent on time.
c. The slope term (b) is 4.53. It tells us the change in Sales when the time increases by 1 month.
d.
e. Forecast the level of sales in August 2015. Show your result in the chart.
f. Forecast the level of sales for August 2018. Don’t need to show it in the chart.
g. Which forecast is more reliable, 2015 or 2018? Why? Explain.
5. For this question, read the Project Guidelines for Chapter 4 and 7. A firm recorded its sales (Qt) in monthly observations from January 2013 to August 2014. The data collected is shown in the table below: Sales ($ Thousands)
Qt
Jan-13
46
Feb-13
56
Mar-13
72
May-13
67
Jun-13
77
Aug-13
66
Sep-13
69
Oct-13
79
Dec-13
88
Jan-14
91
Mar-14
94
Apr-14
104
Jun-14
100
Jul-14
113
Aug-14
120
a. Below is the output:
Regression Statistics Multiple R 0.960795768 R Square 0.923128508 Adjusted R Square 0.917215316 Standard Error 6.064850994 Observations 15 ANOVA df SS MS F Significance F Regression 1 5742.228571 5742.228571 156.1134082 1.28554E-08 Residual 13 478.1714286 36.78241758 Total 14 6220.4 Dependent var: Qt Coefficients Standard Error t Stat P-value Intercept 46.57 3.30 14.13 2.87E-09 t 4.53 0.36 12.49 1.29E-08b. The intercept (a) is 46.57. It tells us the value of Sales that is not dependent on time.
c. The slope term (b) is 4.53. It tells us the change in Sales when the time increases by 1 month.
d.
140 y 4.5286x + 46.571 R2 0.9231 100 80 60 40 20 0 1 2 3 45 6 789 10 11 12 13 14 15 16 MonthsExplanation / Answer
e) 169 in August 2015, assuming t = 27 assuming t = 1 from starting.
f) August 2018 is 332, assuming t=63
g) 2015 is better since these projections are better in short term than in long term
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.