Statistics for Business & Economics
12th Edition
ISBN: 9781285528830
Author: David R. Anderson
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 17, Problem 50SE
Refer to the Costello Music Company problem in exercise 49.
- a. Using time series decomposition, compute the seasonal indexes for the four quarters.
- b. When does Costello Music experience the largest seasonal effect? Does this result appear reasonable? Explain.
49. Consider the Costello Music Company problem in exercise 48. The quarterly sales data follow.
| Year | Quarter I | Quarter 2 | Quarter 3 | Quarter 4 | Total Yearly Sales |
| 1 | 4 | 2 | 1 | 5 | 12 |
| 2 | 6 | 4 | 4 | 14 | 28 |
| 3 | 10 | 3 | 5 | 16 | 34 |
| 4 | 12 | 9 | 7 | 22 | 50 |
| 5 | 18 | 10 | 13 | 35 | 76 |
- a. Use the following dummy variables to develop an estimated regression equation to account for any seasonal and linear trend effects in the data: Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; and Qtr3 = 1 if Quarter 3, 0 otherwise.
- b. Compute the quarterly forecasts for next year.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
IV.
The following graph shows the annual number of car accidents in California. Which of the following
statements about the annual number of car accidents is an accurate conclusion?
Yearly Car Accidents
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
2000
2005
Year
1985
1990
1995
2010
2015
2020
e 2018 Glynlyon, Inc.
O There is a greater decrease in the annual number of car accidents from 1994 to 1995 than from 1997 to 1998.
O There is a smaller decrease in the annual number of car accidents from 1999 to 2000 than from 1997 to 1998.
O There is a smaller increase in the annualnumber of car accidents from 1995 to 1996 than from 1998 to 1999.
O There is a greater increase in the annual number of car accidents from 1993 to 1994 than from 1996 to 1997.
Car Accidents
Please help with the corrected answers in details:
The following time series shows the sales of a particular product over the past 12 months.
Month
Sales
1
105
2
135
3
120
4
105
5
90
6
120
7
145
8
140
9
100
10
80
11
100
12
110
What type of pattern exists in the data?
The data appear to follow a trend pattern.
The data appear to follow a horizontal pattern.
The data appear to follow a cyclical pattern.The data appear to follow a seasonal pattern.
(b) Use ? = 0.2 to compute the exponential smoothing values for the time series. (Round your answers to two decimal places.)
Month t
Time Series Value
Yt
Forecast
Ft
1
105
2
135
3
120
4
105
5
90
6
120
7
145
8
140
9
100
10
80
11
100
12
110
(c) Use a smoothing constant of ? = 0.4 to compute the exponential smoothing forecasts. (Round your answers to two decimal places.)
Month t
Time Series Value
Yt
Forecast
Ft
1
105
2
135…
Chapter 17 Solutions
Statistics for Business & Economics
Ch. 17.2 - Consider the following time series data. Week 1 2...Ch. 17.2 - Refer to the time series data in exercise 1. Using...Ch. 17.2 - Exercises 1 and 2 used different forecasting...Ch. 17.2 - Consider the following time series data. Month 1 2...Ch. 17.3 - Consider the following time series data. Week 1 2...Ch. 17.3 - Consider the following time series data. Month 1 2...Ch. 17.3 - Refer to the gasoline sales time series data in...Ch. 17.3 - Refer again to the gasoline sales time series data...Ch. 17.3 - With the gasoline time series data from Table...Ch. 17.3 - With a smoothing constant of = .2, equation...
Ch. 17.3 - For the Hawkins Company, the monthly percentages...Ch. 17.3 - Corporate triple-A bond interest rates for 12...Ch. 17.3 - The values of Alabama building contracts (in ...Ch. 17.3 - The following time series shows the sales of a...Ch. 17.3 - Ten weeks of data on the Commodity Futures Index...Ch. 17.3 - The U.S. Census Bureau tracks the median price for...Ch. 17.4 - Consider the following time series data. a....Ch. 17.4 - Prob. 18ECh. 17.4 - Consider the following time series. a. Construct a...Ch. 17.4 - Prob. 20ECh. 17.4 - Prob. 21ECh. 17.4 - Prob. 22ECh. 17.4 - The president of a small manufacturing firm is...Ch. 17.4 - FRED (Federal Reserve Economic Data), a database...Ch. 17.4 - Automobile unit sales at B. J. Scott Motors, Inc.,...Ch. 17.4 - Giovanni Food Products produces and sells frozen...Ch. 17.4 - Prob. 27ECh. 17.5 - Consider the following time series. a. Construct a...Ch. 17.5 - Consider the following time series data. a....Ch. 17.5 - The quarterly sales data (number of copies sold)...Ch. 17.5 - Air pollution control specialists in southern...Ch. 17.5 - South Shore Construction builds permanent docks...Ch. 17.5 - Prob. 33ECh. 17.5 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Consider the following time series data. a....Ch. 17.6 - Refer to exercise 35. a. Deseasonalize the time...Ch. 17.6 - The quarterly sales data (number of copies sold)...Ch. 17.6 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Air pollution control specialists in southern...Ch. 17.6 - Electric power consumption is measured in...Ch. 17 - The weekly demand (in cases) for a particular...Ch. 17 - The following table reports the percentage of...Ch. 17 - United Dairies. Inc., supplies milk to several...Ch. 17 - Prob. 44SECh. 17 - Prob. 45SECh. 17 - The Mayfair Department Store in Davenport, Iowa,...Ch. 17 - Canton Supplies, Inc., is a service firm that...Ch. 17 - The Costello Music Company has been in business...Ch. 17 - Consider the Costello Music Company problem in...Ch. 17 - Refer to the Costello Music Company problem in...Ch. 17 - Refer to the Costello Music Company time series in...Ch. 17 - Hudson Marine has been an authorized dealer for CD...Ch. 17 - Refer to the Hudson Marine problem in exercise 52....Ch. 17 - Refer to the Hudson Marine problem in exercise 53....Ch. 17 - Refer to the Hudson Marine data in exercise 53. a....Ch. 17 - Forecasting Food and Beverage Sales The Vintage...Ch. 17 - Forecasting Lost Sales The Carlson Department...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Table 6 shows the year and the number ofpeople unemployed in a particular city for several years. Determine whether the trend appears linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 5 people?arrow_forward6. Present the following data by a suitable diagram showing. The sales and net profits of a private company. Year Sales Net Profits 1998-1999 14% 49% 1999-2000 10% -25% 2000-2001 13% -1% es ehsinar wer loarrow_forward4. Compare the high and the low common stock prices since 2007 in a graph of your choice for "XXX" Corporation. Write a brief interpretation of the main features of the data portrayed in the graph. The high and the low common stock prices for the "XXX" Corporation since 1983 are: Year High Low 2007 40.85 30.90 2008 40.85 30.00 2009 40.85 29.25 2010 48.00 34.00 2011 64.75 32.00 Year High Low 2013 72.00 45.75 2014 81.65 63.25 2015 80.15 63.50 2016 75.35 60.25 2017 98.35 67.75 2018 99.00 70.00 2012 51.75 39.65arrow_forward
- 53. Calculate seasonal index numbers from the following data : RATIO OF OBSERVED TO TREND VALUES (%). Year II IV 2012 108 130 107 93 2013 86 120 110 91 2014 92 118 104 88 2015 78 100 94 78 2016 82 110 98 00 86 2017 X3 If the sales of goods X by a firm in the first quarter of 2018 are worth Rs. 2,00,000, determine how much worth of the goods should be kept in stock by the firm to meet the demand in each of the remaining three quarters of 2018 by using the seasonal index numbers calcuiated above. 106 118 105 98arrow_forwardvt 14. Calculate trend values by the method of Least Square from the data given below and estimate the sales for 2007. Year 2000 2001 2002 2003 2004 Sales of GA. (Rs. lakhs) 70 74 80 86 90 上arrow_forward19. The following data describes the export quantity of a company. Year: 1995 1996 1997 1998 1999 2000 2001 Export: 12 13 13 16 16 19 23 Fit a straight line trend and estimate the export for the year 2002. CS Scanned with CamScannerarrow_forward
- Example 8. Represent the following data by a suitable diagram showing the difference between proceeds and costs: Proceeds and costs of a firm (in thousands of rupees). Year Total Proceeds Total costs 1999 22.0 19.5 2000 27.3 21.7 2001 28.2 30.0 2002 30.3 25.6 2003 32.7 26.1 2004 33.3 34.2arrow_forwardConsider this In the News feature and the following graph. 2200- Stte INional 2175 2150- 21.4 uli 2125 21.1 211 2100- 209 208 20.75 205 2050 204 2025 2000- 1975 1950 Composite Engish Math Reading Science Calculate, for the composite and each of the subject areas, the difference between the national average and the Oklahoma scores. Composite English Math Reading Science Express each difference as a percentage of the national score. (Round your answers to two decimal places.) Composite English Math Reading Science eBookarrow_forward8. You research the cost of a gallon of gasoline over several years to look for a trend. The table shows your data. The line of best fit uses years since 1980 as the input value. What is a line of best fit for the data? Based upon these prices, how much would you expect to pay in 2026? Year 1980 1984 1988 1992 1996 200 2004 2008 2012 Price per Gallon $1.25 S1.27 $1.05 S1.28 $1.43 $1.68 S2.11 $3.72 $3.99 Oy 0.347x + 0.856; $9.88 Oy .087x - 171.26; $5.01 Oy 0.134x + 1.25; $7.41 Oy= 0.087x + 0.587; $4.59arrow_forward
- Intergarated products Need to estimate its pc sales for the nextnext year. the most recent six years of revenue data for the companys line of xt personal computers and those of the industry, is found in the table below; Year XT PC Sales (000,000) All Industry PC Sales Revenue 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 a) Assuming that the sales data above are representative of sales expected next year , use time series regression analysis to forecast next years sales b) determine the correlation correlation for he ime forecast and interpret is meaning c) find the coefficient of determination for the time series forecast and intpret it s meaning d) perform a regression analysis between the annual sales revenues of XT Personal computers and all personal computers if the estimate of next years industry PC sales revenues is $21.9 billion? e) which independent variable should intergrated products coporation IPC choose for its forcasting of sales…arrow_forwardBased on the following graph, what is the year when the largest decrease in GDP took place ? GDP (change YoY) 6% 5% 4% 4% 3% 3% 3% 3% 2% 2% 1% -1% -1% -8% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010o 2011 2012 2013 2009 2001 2005 2007arrow_forwardAn entrepreneur who owns and operates two businesses (A and B) would like to analyze their profitability. They would like your help in the analysis. They give you the annual net profit (in thousands of $) for each business from 2008-2020. Table 1: Annual Net Profits for Businesses A and B Business Year Profit Business Year Profit 2008 -50 2008 -10 2009 57 2009 30 2010 71 2010 27 2011 64 2011 22 2012 60 2012 21 2013 50 2013 20 A 2014 41 2014 24 2015 59 2015 24 2016 71 2016 32 2017 71 2017 36 2018 74 2018 37 019 81 20 40 2020 97 2020 49 a. Suppose you want to graph the distribution of profits. Explain why using only one stem- plot might not be optimal for the analysis. b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What can you say about the distribution from this stemplot? c. When are stemplots useful? And why is that? d. Suppose that instead of having 26 observations you have 200 observations. What graph should you generate? e. What other type of…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Time Series Analysis Theory & Uni-variate Forecasting Techniques; Author: Analytics University;https://www.youtube.com/watch?v=_X5q9FYLGxM;License: Standard YouTube License, CC-BY
Operations management 101: Time-series, forecasting introduction; Author: Brandoz Foltz;https://www.youtube.com/watch?v=EaqZP36ool8;License: Standard YouTube License, CC-BY