Question

The monthly sales for Yazici​ Batteries, Inc., were as​ follows:

Month	Sept	Oct	Nov	Dec
Sales	20	21	23	24

a) Compute the January sales forecast using a trend projection.

Using a method of trend​ projection, the forecast for January Sales is __________. ​(Round your response to two decimal​ places.)

b) The regression equation is _______________.

     The average Sales increase per month is __________.

c) Using a method of trend projection, the forecast for April is _______. (Round your response to two decimal places.)

The March sales forecast using a method of trend projection is __________. (Round your response to two decimal places

Answer 1

In order to perform regression we need to assign a numerical value to the months. In this case we could assign 9, 10, 11, 12 to Sept, Oct, Nov, and Dec. Now using this we can form a regression equation and then consider the next year’s values as follow up numbers such as January is 13, February is 14 and so on.

The calculated forecast is shown below

a)

January sales forecast is 25.50

b)

The regression equation is

y = 7.3 + 1.4x

The average sales increase per month is (given by the slope) 1.4

c)

The forecast for April is 29.70

d)

The March sale forecast is 28.30