National Scan, Inc., sells ratio frequency inventory tags. Monthly sales for a 6
ID: 3204895 • Letter: N
Question
National Scan, Inc., sells ratio frequency inventory tags. Monthly sales for a 6-month period were as follows:
Month:
Sales
Feb
63
Mar
61
Apr
63
May
56
Jun
51
Jul
43
Disregard the demand pattern of the given time series, You are asked to use the time series to derive a trend equation. In order to derive the trend equation is Ft = a + bt, you have to compute several components to compute the values for the variables a and b. Answer the following questions pertaining to information that are relevant to deriving the trend equation.
a) The ty =
b) The y =
c) The value for the b (slope of the trend line) = (in 3 decimal places)
d) The value for the a (intercept of the trend line) = (in 3 decimal places)
Month:
Sales
Feb
63
Mar
61
Apr
63
May
56
Jun
51
Jul
43
Explanation / Answer
a) sum(y)=337 b) sum(ty)=1448
c) trend equation is Ft = a + bt
From Excel
The fitted model is
y= 73.78 -3.91(t)
c)Slope= -3.91
intercept= 73.78
Month(t) Sales (y) ty 2 63 126 3 61 183 4 63 252 5 56 280 6 51 306 7 43 301 Sums 337 1448Related Questions
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