Explore BrainMass

Explore BrainMass

    Forecasting using Regression Analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Jasper Furnishings has $300 million in sales. The company expects that its sales will increase 12% this year. Jasper's CEO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is: Inventories = $25 + 0.125 (sales)
    Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company's year-end inventory turnover ratio?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:15 pm ad1c9bdddf
    https://brainmass.com/business/business-management/forecasting-using-regression-analysis-173235

    Solution Summary

    This solution provides example of Jasper Furnishing in forecasting of turnover ratio using regression analysis given estimated sales.

    $2.19

    ADVERTISEMENT