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Exhibit 18

Question 6

Essay

Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel or statistical software. )Using the decomposition method, A)compute the adjusted seasonal indices for the four quarters. B)find the linear trend equation for the seasonally adjusted quarterly sales. C)make the sales forecasts for the first and fourth quarter of Year 8. Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel or statistical software. )Using the decomposition method, A)compute the adjusted seasonal indices for the four quarters. B)find the linear trend equation for the seasonally adjusted quarterly sales. C)make the sales forecasts for the first and fourth quarter of Year 8. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β0 + β1Qtr1 + β2Qtr2 + β3Qtr3 + β4t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel or statistical software. )Using the decomposition method, A)compute the adjusted seasonal indices for the four quarters. B)find the linear trend equation for the seasonally adjusted quarterly sales. C)make the sales forecasts for the first and fourth quarter of Year 8. Refer to Exhibit 18.8.(Use Excel or statistical software. )Using the decomposition method,
A)compute the adjusted seasonal indices for the four quarters.
B)find the linear trend equation for the seasonally adjusted quarterly sales.
C)make the sales forecasts for the first and fourth quarter of Year 8.

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a.0.9322,1.0066,0.94...

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