22. The Burling Company has noticed that its monthly sales appear to be related

Question

22. The Burling Company has noticed that its monthly sales appear to be related to the number of salespeople it hires, the amount spent on advertising, and the price of its product. A multiple regression sales forecasting model has been developed: Y 12,348 + 657x1 + 0.469x,-240x3 where: Y number of units sold in a month X number of salespeople hired X2 dollar amount spent on advertising in a month X3 price charged for one unit of the product Burling's sales manager would like a sales forecast for next month if 17 sales people are used, $21,000 is spent on advertising, and the price is set at $3199, the multiple regression forecasting model to develop a forecast for the number of units of the product to be sold next month. a. Use b. Explain the assumptions implied in your forecast Forecast Ranging 23. From the data in Problem 2: a. Compute the standard error of the forecast. b. Determine what upper and lower confidence limits can be estimated for the Year 11 forecast if a significance level of 0.01 is used.

Explanation / Answer

22.

A.

Sales forecast = 12348 + 657X1 + .469X2 – 240X3

X1 = 17

X2 = $21000

X3 = $31.99

So,

Sales forecast for next month = 12348 + 657*17 + .469*21000 – 240*31.99

Sales forecast for next month = 25688.4

B.

Assumptions implied in the forecast are as follows:

Pl. repost other unanswered question with data for their proper answers!

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.