Question
In: Finance
The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle....
The following equation summarizes the trend portion of quarterly
sales of condominiums over a long cycle. Sales also exhibit
seasonal variations.
Ft = 53 − 4.3t + 3.3t
2
where
Ft = Unit sales
t = 0 at the first quarter of last year
| Quarter | Relative |
| 1 | 1.05 |
| 2 | 1.05 |
| 3 | .55 |
| 4 | 1.35 |
Using the information given, prepare a forecast of sales for each
quarter of next year (not this year), and the first quarter of the
year following that. (Round intermediate calculations and final
answers to 2 decimal places.)
| Quarter | Forecast |
| 1 | |
| 2 | |
| 3 | |
| 4 | |
| 1 | |
Solutions
Expert Solution
t = 0 represents Q1 of last year. Please see the table below. Please see the second row that explains the mathematics. We have to forecast Ft for 4 quarters of next year and 1 quarter of the following year. "t" corresponding to these periods is from t = 8 to t = 12.
Your answers are:
| Quarter | Forecast |
| 1 | 293.55 |
| 2 | 342.00 |
| 3 | 207.00 |
| 4 | 658.80 |
| 1 | 614.65 |
Please see the sequence below for further understanding. Cells highlighted in yellow are your answer.
| Year | Quarter | t | Forecast Without Seasonality | Relative/Seasonal Index | Forecast With Seasonality |
| Ft= 53 − 4.3 x t + 3.3 x t2 | R | R x Ft | |||
| Last year | 1 | 0 | 53.00 | 0.95 | 61.75 |
| 2 | 1 | 52.00 | 0.9 | 57.60 | |
| 3 | 2 | 57.60 | 0.45 | 32.40 | |
| 4 | 3 | 69.80 | 1.2 | 106.80 | |
| This year | 1 | 4 | 88.60 | 0.95 | 109.25 |
| 2 | 5 | 114.00 | 0.9 | 135.00 | |
| 3 | 6 | 146.00 | 0.45 | 87.30 | |
| 4 | 7 | 184.60 | 1.2 | 296.40 | |
| Next Year | 1 | 8 | 229.80 | 0.95 | 293.55 |
| 2 | 9 | 281.60 | 0.9 | 342.00 | |
| 3 | 10 | 340.00 | 0.45 | 207.00 | |
| 4 | 11 | 405.00 | 1.2 | 658.80 | |
| Year after | 1 | 12 | 476.60 | 0.95 | 614.65 |
jeff jeffy answered 7 months agoRelated Solutions
The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle....
The following equation summarizes the trend portion of quarterly
sales of condominiums over a long cycle. Sales also exhibit
seasonal variations.
Ft = 64 − 5.4t + 4.4t
2
where
Ft = Unit sales
t = 0 at the first quarter of last year
Quarter
Relative
1
.90
2
1.10
3
.40
4
1.60
Using the information given, prepare a forecast of sales for each
quarter of next year (not this year), and the first quarter of the
year following...
5) Based on quarterly data collected over the last four years, the following regression equation was...
5) Based on quarterly data collected over the last four years,
the following regression equation was found to forecast the
quarterly demand for the number of new copies of an economics
textbook: t= 3,305 – 665 Qtr1 – 1,335 Qtr 2 + 305 Qtr3, where
Qtr1,Qtr2, and Qtr3 are dummy variables corresponding to Quarters
1, 2, and 3. The demand forecast for Quarter 2 of the next year is
________.
A) 2,640
B) 1,970
C) 3,610
D) 3,305
2) In...
a. What is trend in long-term debt paying ability of over the last three years for...
a. What is trend
in long-term debt paying ability of over the last three years for
CVS - using ratios?
b. What is trend in long-term
debt paying ability of over the last three years Walgreens - using
ratios?
c. Which company has had
better long-term debt paying ability over the last 3 years? Explain
with ratios.
Income Statement for CVS
Revenue
12/31/2017
12/31/2016
12/31/2015
Total Revenue
184,765,000
177,526,000
153,290,000
Cost of Revenue
156,220,000
148,669,000
126,762,000
Gross Profit
28,545,000
28,857,000...
The quarterly sales data (number of copies sold) for a college textbook over the past three...
The quarterly sales data (number of copies sold) for a college
textbook over the past three years follow:
Year
Quarter
Sales
1
1
1690
2
940
3
2625
4
2500
2
1
1800
2
900
3
2900
4
2360
3
1
1850
2
1100
3
4
2930
2615
a. Construct a time series plot. What type of pattern exists in
the data?
b. Show the four‐quarter and centered moving average values for
this time series.
c. Compute the seasonal and...
The quarterly sales data (number of copies sold) for a college textbook over the past three...
The quarterly sales data (number of copies sold) for a college
textbook over the past three years follow. Quarter Year 1 Year 2
Year 3 1 1690 1800 1850 2 940 900 1100 3 2625 2900 2930 4 2500 2360
2615
a. Construct a time series plot. What type of pattern exists in
the data?
b. Show the four-quarter and centered moving average values for
this time series.
c. Compute the seasonal and adjusted seasonal indexes for the
four quarters....
The quarterly sales (number of books sold) over the past 3 years are as shown below....
The quarterly sales (number of books sold) over the past 3 years
are as shown below.
Year
Quarter
Period
Sales
1
1
1
1700
1
2
2
1000
1
3
3
2700
1
4
4
2500
2
1
5
1800
2
2
6
900
2
3
7
2900
2
4
8
2400
3
1
9
1800
3
2
10
1100
3
3
11
2900
3
4
12
2600
Construct a time series plot for this data.
Paste the time series...
The quarterly sales data (number of copies sold) for a college textbook over the past three...
The quarterly sales data (number of copies sold) for a college
textbook over the past three years follow.
Click on the datafile logo to reference the data.
quarter year 1 year 2 year 3
1 1690 1800 1850
2 940 900 1100
3 2625 2900 2930
4 2500 2360 2615
e. Deseasonalize the time series (to 3
decimals).
Year
Quarter
Deseasonalized Value
1
1
2
3
4
2
1
2
3
4
3
1
2
3
4
f....
A cantilever beam 4m long carries a uniform load of 3.5 kN/m over a portion 1.5m...
A cantilever beam 4m long carries a uniform load of 3.5 kN/m
over a portion 1.5m from the free end. E = 200 GPa and I = 30 x
10^6 mm^4
Using Area Moment Method
a. Determine the rotation at the free end.
b. Determine the deflection at the free end
A simply supported beam of length 7m has a concentrated couple
Mo of 10kNm (Counterclockwise) applied at one end.
Using Double Integration Method
The maximum deflection is located at...
a. Obtain the linear trend equation for the following data on new checking accounts at Fair...
a. Obtain the linear trend equation for the
following data on new checking accounts at Fair Savings Bank and
use it to predict expected new checking accounts for periods 16
through 19. (Round your intermediate calculations and final
answers to 2 decimal places.)
Period
New
Accounts
Period
New
Accounts
Period
New
Accounts
1
200
6
239
11
281
2
215
7
246
12
275
3
211
8
250
13
283
4
229
9
256
14
288
5
235
10
267...
The quarterly sales data (number of book sold) for Christian book over the past three years...
The quarterly sales data (number of book sold) for Christian
book over the past three years in California follow:
Year 1
Year
2
Year 3
1690
1800
1850
940
900
1100
2625
2900
2930
2500
2360
2615
1. Construct a time series plot. What type of pattern exists in
the data? This was not shown in the WebEx example I provided. But
you can simply create this graph in Excel (Go to INSERT and look
for charts under INSERT...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
- Do you know why your credit card can be refused even though you are profitable?
ADVERTISEMENT