Quarterly sales for swarthmore cycles are follows: 1997-I 100 1997-II 110 1997-III 115 1997-IV 125 1998-I…

Quarterly sales for swarthmore cycles are follows:
1997-I 100

1997-II 110

1997-III 115

1997-IV 125

1998-I 130

1998-II 135

1998-III 145

1998-IV 150
a) Plot the sales data and graphically fit a straight
line to the points.
b) In using the data for trend prediction, would the
constant rate of change or the constant percentage change model be
more appropriate. Explain
c) Using the data to estimate the co-efficient of the
equation St = So(1+g).
d) using a calculator or computation method described
on pages 115-116 of chapter 4, use the data to estimate the
co-efficient of the equation St = So+bt , where St is sales in the
t quarter.

significant at the 95 percent pum be Forecast the demand for beef in the third quarter of 1999. 15-4 Quarterly sales for Swarthmore Cycles are as follows: Period Sales Period Sales 1997:1 100 1998:1 130 1997:11 110 1998:11 135 1997:111 115 1998:111145 1997:IV 125 1998:IV 150 a. Plot the sales data and graphically fit a straight line to the points. CHAPTER 5 Business and Economic Forecasting 173 b. In using the data for trend prediction would the constant rate of change or the constant percentage change model be more appropriate? Explain: c. Using a calculator or the computation methods described on pages 115-116 of chapter 4, use the data to estimate the coefficients of the equation S, Sot br, where S, is sales in the Ith quarter. d. Use the data to estimate the cocfficients of the equation S, S.(1 + g) Based on quarterly data from 1995:1 to 1998:IV, Highland Foods estimates that potato chip sales can be projected using the equation S, – 5.000.000 + 100,000 17-18-19 5

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