Question

In: Economics

Period Sales ($million) 2017 Q1 2874 2017 Q2 3000 2017 Q3 2913 2017 Q4 2916 2918...

Period

Sales ($million)

2017 Q1

2874

2017 Q2

3000

2017 Q3

2913

2017 Q4

2916

2918 Q1

2910

2018 Q2

3052

2018 Q3

3116

2018 Q4

3210

2019 Q1

3243

2019 Q2

3351

2019 Q3

3305

2019 Q4

3267

The above table represents the quarterly sales (measured in millions of dollars) for the Goodyear Tire from 2017 to 2019.

  1. Compute the 4-quarter moving average. Put your answers onto the table.
  2. Compute the 4-quarter centered moving average. Put your answers onto the table.
  3. Compute the seasonal factor. Put your answers onto the table.Compute the seasonal index. Put your answers onto the table.
  4. Compute the seasonal index. Put your answers onto the table.

Solutions

Expert Solution

Period Period Number Sales ($million) Periods Used 4 Quarter Moving Average Value 4 Quarter Centered Moving Average Value Seasonality Index
2017 Q1 1 2874 0.077347
1.5
2017 Q2 2 3000 0.080738
2.5 2017 Q1, 2017 Q2, 2017 Q3, 2017 Q4 =(2874+3000+2913+2916)/4 2925.75
2017 Q3 3 2913 =(2925.75+2934.75)/2 2930.25 0.078397
3.5 2017 Q2, 2017 Q3, 2017 Q4, 2018 Q1 =(3000+2913+2916+2910)/4 2934.75
2017 Q4 4 2916 =(2934.75+2947.75)/2 2941.25 0.078478
4.5 2017 Q3, 2017 Q4, 2018 Q1, 2018 Q2 =(2913+2916+2910+3052)/4 2947.75
2918 Q1 5 2910 =(2947.75+2998.5)/2 2973.125 0.078316
5.5 2017 Q4, 2018 Q1, 2018 Q2, 2018 Q3 =(2916+2910+3052+3116)/4 2998.5
2018 Q2 6 3052 =(2998.5+3072)/2 3035.25 0.082138
6.5 2018 Q1, 2018 Q2, 2018 Q3, 2018 Q4 =(2910+3052+3116+3210)/4 3072
2018 Q3 7 3116 =(3072+3155.25)/2 3113.625 0.08386
7.5 2018 Q2, 2018 Q3, 2018 Q4, 2019 Q1 =(3052+3116+3210+3243)/4 3155.25
2018 Q4 8 3210 =(3155.25+3230)/2 3192.625 0.08639
8.5 2018 Q3, 2018 Q4, 2019 Q1, 2019 Q2 =(3116+3210+3243+3351)/4 3230
2019 Q1 9 3243 =(3230+3277.25)/2 3253.625 0.087278
9.5 2018 Q4, 2019 Q1, 2019 Q2, 2019 Q3 =(3210+3243+3351+3305)/4 3277.25
2019 Q2 10 3351 =(3277.25+3291.5)/2 3284.375 0.090185
10.5 2019 Q1, 2019 Q2, 2019 Q3, 2019 Q4 =(3243+3351+3305+3267)/4 3291.5
2019 Q3 11 3305 0.088947
11.5
2019 Q4 12 3267 0.087924
TOTAL 37157

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