A B 1 2 3 4 5 6 C D E F G H J K L M N ° P Q R S Car Plus Co. believes local payroll and local sales of import cars for the year can be considerably associated with Car Plus's yearly sales. The management looked into their stored data and summarized what is available in Table 4 below (the 10 years in the table are not consecutive years). Associate method (i.e., linear regression) is the forecasting method the management has decided to use. Answer the questions Q1 and Q2 below. 7 Table 4 Local sales of import 8 cars (in million) Local payroll Car Plus's yearly (in billion) sales (in thousand) 9 Year 1 8.0 2.0 94 10 Year 2 11.0 3.5 135 11 Year 3 12.0 4.0 188 12 Year 4 15.0 4.5 225 13 Year 5 13.4 4.2 175 14 Year 6 17.0 2.7 196 15 Year 7 18.4 3.5 260 16 Year 8 21.6 3.6 318 17 Year 9 20.5 3.2 270 18 Year 10 16.0 2.2 195 19 20 21 22 Table 5 23 Interest rate (%) 24 Year 1 3.0 25 Year 2 4.2 26 Year 3 6.0 27 Year 4 3.0 28 Year 5 5.0 29 Year 6 4.8 30 Year 7 3.0 31 Year 8 6.0 B2 Year 9 4.0 33 Year 10 2.0 34 35 36 87 38 89 40 41 42 13 14 15 46 47 48 19 50 51 52 53 54 55 56 57 58 59 50 51 52 53 54 Q1: Given the estimated local sales of import cars, $18 million, and estimated local payroll, $3.8 billion, next year, what is the forecasted sales for Car Plus for next year? You have to show your anaylsis to earn points. Sales next year (in thousand) Q2: The manager, Alan, suggested the annual average interest rate (Table 5) be taken into consideration along with local payroll and local sales of import cars for the year, when forecasting Car Plus's yearly sales. Along with the information indicated in Q1, Alan predicted the average interest rate next year is 5.6%. Should the interest rate be included to forecast Car Plus's next year's sales? Provide the quantitative/statistical reasoning behind your answer (no personal perception please). Yes or No, and your reasoning
A B 1 2 3 4 5 6 C D E F G H J K L M N ° P Q R S Car Plus Co. believes local payroll and local sales of import cars for the year can be considerably associated with Car Plus's yearly sales. The management looked into their stored data and summarized what is available in Table 4 below (the 10 years in the table are not consecutive years). Associate method (i.e., linear regression) is the forecasting method the management has decided to use. Answer the questions Q1 and Q2 below. 7 Table 4 Local sales of import 8 cars (in million) Local payroll Car Plus's yearly (in billion) sales (in thousand) 9 Year 1 8.0 2.0 94 10 Year 2 11.0 3.5 135 11 Year 3 12.0 4.0 188 12 Year 4 15.0 4.5 225 13 Year 5 13.4 4.2 175 14 Year 6 17.0 2.7 196 15 Year 7 18.4 3.5 260 16 Year 8 21.6 3.6 318 17 Year 9 20.5 3.2 270 18 Year 10 16.0 2.2 195 19 20 21 22 Table 5 23 Interest rate (%) 24 Year 1 3.0 25 Year 2 4.2 26 Year 3 6.0 27 Year 4 3.0 28 Year 5 5.0 29 Year 6 4.8 30 Year 7 3.0 31 Year 8 6.0 B2 Year 9 4.0 33 Year 10 2.0 34 35 36 87 38 89 40 41 42 13 14 15 46 47 48 19 50 51 52 53 54 55 56 57 58 59 50 51 52 53 54 Q1: Given the estimated local sales of import cars, $18 million, and estimated local payroll, $3.8 billion, next year, what is the forecasted sales for Car Plus for next year? You have to show your anaylsis to earn points. Sales next year (in thousand) Q2: The manager, Alan, suggested the annual average interest rate (Table 5) be taken into consideration along with local payroll and local sales of import cars for the year, when forecasting Car Plus's yearly sales. Along with the information indicated in Q1, Alan predicted the average interest rate next year is 5.6%. Should the interest rate be included to forecast Car Plus's next year's sales? Provide the quantitative/statistical reasoning behind your answer (no personal perception please). Yes or No, and your reasoning
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Please walk me step by step for this problem
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Car Plus Co. believes local payroll and local sales of import cars for the year can be considerably associated with Car Plus's yearly sales. The management looked into their stored data and summarized what is
available in Table 4 below (the 10 years in the table are not consecutive years). Associate method (i.e., linear regression) is the forecasting method the management has decided to use. Answer the questions
Q1 and Q2 below.
7 Table 4
Local sales of import
8
cars (in million)
Local payroll Car Plus's yearly
(in billion)
sales (in thousand)
9 Year 1
8.0
2.0
94
10 Year 2
11.0
3.5
135
11 Year 3
12.0
4.0
188
12 Year 4
15.0
4.5
225
13
Year 5
13.4
4.2
175
14 Year 6
17.0
2.7
196
15 Year 7
18.4
3.5
260
16 Year 8
21.6
3.6
318
17 Year 9
20.5
3.2
270
18 Year 10
16.0
2.2
195
19
20
21
22 Table 5
23
Interest rate (%)
24 Year 1
3.0
25 Year 2
4.2
26 Year 3
6.0
27 Year 4
3.0
28
Year 5
5.0
29 Year 6
4.8
30 Year 7
3.0
31 Year 8
6.0
B2 Year 9
4.0
33 Year 10
2.0
34
35
36
87
38
89
40
41
42
13
14
15
46
47
48
19
50
51
52
53
54
55
56
57
58
59
50
51
52
53
54
Q1: Given the estimated local sales of import cars, $18 million, and estimated local payroll, $3.8
billion, next year, what is the forecasted sales for Car Plus for next year? You have to show your
anaylsis to earn points.
Sales next year
(in thousand)
Q2: The manager, Alan, suggested the annual average interest rate (Table 5) be taken into consideration along with local payroll and local
sales of import cars for the year, when forecasting Car Plus's yearly sales. Along with the information indicated in Q1, Alan predicted the
average interest rate next year is 5.6%. Should the interest rate be included to forecast Car Plus's next year's sales? Provide the
quantitative/statistical reasoning behind your answer (no personal perception please).
Yes or No, and your reasoning
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