# Nicole Becker - Assignment 4 TIME SERIES ANALYSIS Complete the following questions: Chapter 16 PDF: Exercises 4, 10, 12, and 26. 4. Listed below is the net sales in \$million for Home Depot Inc. and...

Nicole Becker - Assignment 4 TIME SERIES ANALYSIS
Complete the following questions:
Chapter 16 PDF: Exercises 4, 10, 12, and 26.
4. Listed below is the net sales in \$million for Home Depot Inc. and its subsidiaries from 1993 to 2004.
 Year Net Sales Year Net Sales 1993 \$9,239 1999 \$38,434 1994 12477 2000 45738 1995 15470 2001 53553 1996 19535 2002 58247 1997 24156 2003 64816 1998 30219 2004 73094

Determine the least squares equation. According to this information, what are the estimated sales for 2008 and 2009?
1. The Appliance Centre sells a variety of electronic equipment and home appliances. For the last four years the following quarterly sales (in \$ millions) were reported.
 Year I II III IV 2005 \$5.30 \$4.10 \$6.80 \$6.70 2006 4.8 3.8 5.6 6.8 2007 4.3 3.8 5.7 6 2008 5.6 4.6 6.4 5.9

Determine a typical seasonal index for each of the four quarters.
12.Team Sports Inc. sells sporting goods to high schools and colleges via a nationally distributed catalogue. Management at Team Sports estimates it will sell 2000 Wilson Model A2000 catcher’s mitts next year. The deseasonalized sales are projected to be the same for each of the four quarters next year. The seasonal factor for the second quarter is 145. Determine the seasonally adjusted sales for the second quarter of next year.
26.The quarterlyproductionofpinelumber in millionsofboardfeet,byNorthwestLumbersince2004is:
Quarter
 Winter Spring Summer Fall 7.8 10.2 14.7 9.3 6.9 11.6 17.5 9.3 8.9 9.7 15.3 10.1 10.7 12.4 16.8 10.7 9.2 13.6 17.1 10.3

a)Determine the typical seasonal pattern for the production data using the ratio-to-moving-average method.
b)Interpret the pattern.
c)Deseasonalizethedataanddeterminethelineartrendequation.
d)Project the seasonally adjusted production for the four quarters of 2009.

## Solution

David answered on Dec 20 2021
4. Listed below is the net sales in \$million for Home Depot Inc. and its subsidiaries from
1993 to 2004.
Year Net Sales Year Net Sales
1993 \$9,239 1999 \$38,434
1994 12477 2000 45738
1995 15470 2001 53553
1996 19535 2002 58247
1997 24156 2003 64816
1998 30219 2004 73094

Determine the least squares equation. According to this information, what are the
estimated sales for 2008 and 2009?

Solution:
Here we fit a regression line on Net Sales using year. The results are given below:
SUMMARY
OUTPUT
Regression Statistics
Multiple R 0.992
R Square 0.984
Standard E
or 2901.118
Observations 12

ANOVA
df SS MS F Significance F
Regression 1 5147676005 5.15E+09 611.618 0.000
Residual 10 84164869.9 8416487
Total 11 5231840875

Coefficients
Standard
E
or t Stat P-value
Intercept -11953541.161 484844.206 -24.654 0.000
Year 5999.811 242.604 24.731 0.000

Here the least square equations are:
y-bar = α + β*x-bar
∑xy = α∑x + β∑x
2

Hence the least square equations are:
37081.5 = α + β*1998.5
890146506 = 23982*α + 47928170*β
Therefore here the least square regression line is: Net Sales = -11953541.161 + 5999.811*Year
According to this information,
The estimated sales for 2008 = -11953541.161 + 5999.811*2008 = \$94079.327
and for 2009 = -11953541.161 + 5999.811*2009 = \$100079.138
10. The Appliance Centre sells a variety of electronic equipment and home appliances.
For the last four years the following quarterly sales (in \$ millions) were reported.

Quarter
Year I II III IV
2005 \$5.30 \$4.10 \$6.80 \$6.70
2006 4.8 3.8 5.6 6.8
2007 4.3 3.8 5.7 6
2008 5.6 4.6 6.4 5.9

Determine a typical seasonal index for each of the four quarters.
Solution:
The following table shows the seasonal indices for the 4 quarters:
Year I II III IV Total
2005 5.3 4.1 6.8 6.7 22.9
2006 4.8 3.8 5.6 6.8 21
2007 4.3 3.8 5.7 6 19.8
2008 5.6 4.6 6.4 5.9 22.5
Total 20 16.3 24.5 25.4 86.2
Seasonal Index...
SOLUTION.PDF