The All American Toy Company has a very seasonal sales pattern. Sales are high d

Question

The All American Toy Company has a very seasonal sales pattern. Sales are high during the fall quarter, drop off substantially in the winter quarter and are more even during spring and summer quarters. The following historical data exist for 16 quarters.

These data are included in the Final Exam Excel Files under the tab

Quarter Sales Winter-11 3000 Spring-11 5000 Summer-11 5500 Fall-11 7000 Winter-12 3400 Spring-12 6000 Summer-12 6200 Fall-12 8100 Winter-13 3600 Spring-13 6700 Summer-13 6400 Fall-13 9000 Winter-14 4000 Spring-14 7000 Summer-14 7300 Fall-14 9900

Explanation / Answer

Find X?Y and X2 as it was done in the table below.

Step 2: Find the sum of every column:

?X=136 , ?Y=98100 , ?X?Y=914400 , ?X2=1496

Find the above to find a and b

a = 4117.5

b = 236.912

Hence equation is

y = a + b?x

y = 4117.5 + 236.912?x

For 2016, in the same pattern x values for 4 qrs will be

21.22.23.24

Hence Y = 9092.65

               = 9329.56

               = 9565.96

               = 9802.87

X Y X?Y X?X 1 3000 3000 1 2 5000 10000 4 3 5500 16500 9 4 7000 28000 16 5 3400 17000 25 6 6000 36000 36 7 6200 43400 49 8 8100 64800 64 9 3600 32400 81 10 6700 67000 100 11 6400 70400 121 12 9000 108000 144 13 4000 52000 169 14 7000 98000 196 15 7300 109500 225 16 9900 158400 256

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