A. Assuming that the sales data above are representative of sales expected next year, use time series regression analysis to forecast next year’s sales revenues (there is no seasonal effect). B. Perform a regression analysis between the annual sales revenues of XT Personal Computers and all industry PC annual sales revenues. What is the forecast for next year’s sales revenue for XT Personal Computers if the estimate of next year’s industry PC sales revenues is $21.9 billion?
Integrated Products Corporation (IPC) needs to estimate its PC sales for next year.
The most recent six years of revenue data for the company’s line of XT Personal
Computers, and those of the industry, is found in the table below:
| Year | XT PC Sales Revenue ($’000,000) |
All Industry PC Sales Revenue ($’000,000,000) |
| 1 | 2.4 | 4.6 |
| 2 | 5.9 | 8.6 |
| 3 | 15.5 | 10.7 |
| 4 | 27.8 | 14.8 |
| 5 | 35.9 | 18.5 |
| 6 | 38.1 | 19.4 |
Required:
A. Assuming that the sales data above are representative of sales expected next
year, use time series regression analysis to
(there is no seasonal effect).
B. Perform a regression analysis between the annual sales revenues of XT
Personal Computers and all industry PC annual sales revenues. What is the
forecast for next year’s sales revenue for XT Personal Computers if the estimate
of next year’s industry PC sales revenues is $21.9 billion?
Step by step
Solved in 3 steps with 6 images
