Answered: Year Quarter Period Cost/Unit ($) 1…

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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Year	Quarter	Period	Cost/Unit ($)
1	1	1	$20.00
	2	2	$17.23
	3	3	$13.39
	4	4	$17.94
2	1	5	$20.29
	2	6	$25.61
	3	7	$22.62
	4	8	$29.63
3	1	9	$23.87
	2	10	$20.35
	3	11	$26.32
	4	12	$25.50
4	1	13	$20.90
	2	14	$28.48
	3	15	$32.65
	4	16	$25.78
5	1	17	$28.90
	2	18	$32.61
	3	19	$28.66
	4	20	$25.27
6	1	21	$25.80
	2	22	$35.71
	3	23	$27.26
	4	24	$27.89
7	1	25	$28.50
	2	26	$28.64
	3	27	$32.52
	4	28	$28.24
8	1	29	$37.95
	2	30	$28.59
	3	31	$37.07
	4	32	$38.16

Construct a time series plot. What type of pattern exists in the data?

The time series plot shows a horizontal pattern.The time series plot shows a nonlinear trend pattern. The time series plot shows an upward trend pattern.The time series plot shows a downward trend pattern.The time series plot shows a seasonal pattern.

(b)

Use simple linear regression analysis to find the estimated parameters for the line that minimizes MSE for this time series. (Round your answers to two decimal places.)

b₀=b₁=

(c)

What is the average cost increase (in $) that the firm has been realizing per quarter? (Round your answer to two decimal places.)

(d)

Compute an estimate of the cost/unit (in $) for the next quarter. (Round your answer to two decimal places.)

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