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given actual sales data during the last three years (12 quarters), a regression

ID: 442560 • Letter: G

Question

given actual sales data during the last three years (12 quarters), a regression analysis that cosiders seasonality with an additive form (i.e defining quarters as dummy variables) has been conducted to forecast the damand in the this year with the following Excel output.

1. What is the demand forecast for quarter 1 of this year?

A. 10109

B. 8152

C.7385

D. 6511

2. What is the demand forecast for quarter 4 of this year?

A. 2328

B. 3023

C. 5763

D. 6792

(Please, show your work)

Coefficients Error t Stat P- value intercept 3841.67 157.64 24.37 0 period 184.38 15.26 -12.08 0 Q1 1913.54 148.25 12.91 0 Q2 131.25 4.27 7.31 0 Q3 -948.96 141.82 6.69 0

Explanation / Answer

The demand forecasr for quarter 1 through 2 years moving average is 6511

The demand forecast for quarter through 2 years moving average is 2328