iPad 12:49 AM 31%. Question 3 (of 3) 50.00 points The Appliance Centre sells a v

Question

iPad 12:49 AM 31%. Question 3 (of 3) 50.00 points The Appliance Centre sells a variety of electronic equipment and home appliances. For the last four years, the following quarterly sales (in $ millions) were reported: Quarter Year 2011 2012 2013 2014 $5.3 4.8 4.3 5.6 $4.1 3.8 3.8 4.6 $6.8 5.6 5.7 6.4 $6.7 6.8 6.0 5.9 Seasonal index for each of the four quarters follows Quarter Index 0.9067 0.7600 1.1249 1.2085 Use the seasonal indexes to determine the deseasonalized sales. Determine the linear trend equation based on the quarterly data for the four years. (Do not round the intermediate calculations. Round the final answers in millions of dollars to 4 decimal places.) a. b. Forecast the seasonally adjusted sales for 2015. (Round the intermediate calculations and the final answers in millions of dollars to 4 decimal places.) Quarter

Explanation / Answer

Deasonalised sales = seasonalised sales/ seasonal index of that quarter.

For example deasonalised sale of 5.3 is 5.3/ 0.9067

a)

Deseasonalised sales looks like this

Aggregating into quarter and sales

Regressing the data, we get

sales = 5.5682 -0.0697 * quarter

b)

Deseasonlised forecast for 2015 using the above equation

Seasonalised sales = Deseasonalised sales * seasonality index

Quarter 2011 2012 2013 2014 1 5.8454 5.2939 4.7425 6.1762 2 5.3947 5.0000 5.0000 6.0526 3 6.0450 4.9782 5.0671 5.6894 4 5.5441 5.6268 4.9648 4.8821

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