Required information [The following information applies to the questions displayed below.] Lexon Incorporated is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2022. The relevant quarterly data for the previous three years follow: 2019 Quarter Return 2020 Return Expenses Quarter Expenses 2021 Quarter Return Expenses 1 $12,500 1 $12,900 1 $13,300 2 11,600 2 12,100 2 12,300 3 11,300 3 13,700 4 11,700 14,100 3 12,100 14,600 The result of a simple regression analysis using all 12 data points yielded an intercept of $11,869.70 and a coefficient for the independent variable of $125.17. (R-squared = 0.19, SE = $990.76.)
Required information [The following information applies to the questions displayed below.] Lexon Incorporated is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2022. The relevant quarterly data for the previous three years follow: 2019 Quarter Return 2020 Return Expenses Quarter Expenses 2021 Quarter Return Expenses 1 $12,500 1 $12,900 1 $13,300 2 11,600 2 12,100 2 12,300 3 11,300 3 13,700 4 11,700 14,100 3 12,100 14,600 The result of a simple regression analysis using all 12 data points yielded an intercept of $11,869.70 and a coefficient for the independent variable of $125.17. (R-squared = 0.19, SE = $990.76.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
![Required information
[The following information applies to the questions displayed below.]
Lexon Incorporated is a large manufacturer of affordable DVD players. Management recently became aware of rising
expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the
controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2022.
The relevant quarterly data for the previous three years follow:
2019
Quarter
Return
Expenses
2020
Quarter
Return
Expenses
2021
Quarter
Return
Expenses
1
$12,500
1
$12,900
1
$13,300
2
11,600
2
12,100
2
12,300
3
11,300
3
4
13,700
4
11,700
14,100
3
4
12,100
14,600
The result of a simple regression analysis using all 12 data points yielded an intercept of $11,869.70 and a coefficient for
the independent variable of $125.17. (R-squared = 0.19, SE = $990.76.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4011acea-faa3-44fa-913f-50be6b26f569%2Fd88971b1-43b2-424f-8b58-6768ce6ab836%2Fwpc3g88_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Lexon Incorporated is a large manufacturer of affordable DVD players. Management recently became aware of rising
expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the
controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2022.
The relevant quarterly data for the previous three years follow:
2019
Quarter
Return
Expenses
2020
Quarter
Return
Expenses
2021
Quarter
Return
Expenses
1
$12,500
1
$12,900
1
$13,300
2
11,600
2
12,100
2
12,300
3
11,300
3
4
13,700
4
11,700
14,100
3
4
12,100
14,600
The result of a simple regression analysis using all 12 data points yielded an intercept of $11,869.70 and a coefficient for
the independent variable of $125.17. (R-squared = 0.19, SE = $990.76.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 5 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education