Exam 16: Time Series and Forecasting

i. A typical monthly seasonal index of 107.0 indicates that sales (or whatever the variable is) are 7 percent above the annual average). ii. Seasonal variation is quite common in the retail and wholesale industries.t6 iii. A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average)

The following linear trend equation was developed for annual sales from 1995 to 2001 with 1995 the base or zero year. ŷ = 500 + 60t ($000). What are the estimated sales for 2005 ($000)?

Which of the following is true for the exponential equation?

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003. Using the printout below, what are the estimated sales for 2011?

What is the general equation for the logarithmic trend equation is log $\hat{y}$ =:

i. If the sales, production or other data over a period of time tend to approximate a straight-line trend, the equation developed by the least squares method cannot be used to forecast sales for a future period. Ii) A straight-line trend equation is used to represent the time series when it is believed that the data is increasing (or decreasing) by equal amounts, on the average, from one period to another. Iii) If the past data approximates a straight line, the equation used is = a + bt, where a is the y- intercept and b is the slope of the line.