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...

1 answer below »
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.
YearNet SalesYearNet Sales
1993$9,2391999$38,434
199412477200045738
199515470200153553
199619535200258247
199724156200364816
199830219200473094

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.
    YearIIIIIIIV
    2005$5.30$4.10$6.80$6.70
    20064.83.85.66.8
    20074.33.85.76
    20085.64.66.45.9

    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
    WinterSpringSummerFall
    7.810.214.79.3
    6.911.617.59.3
    8.99.715.310.1
    10.712.416.810.7
    9.213.617.110.3

    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.
    Answered Same DayDec 20, 2021

    Solution

    David answered on Dec 20 2021
    3 Votes
    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
    Adjusted R Square 0.982
    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

    Answer To This Question Is Available To Download

    Related Questions & Answers

    More Questions »

    Submit New Assignment

    Copy and Paste Your Assignment Here