Purchase Solution

Forecasting using Regression Analysis

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

Solution Summary

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

Purchase this Solution

Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.