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    Graphing, seasonality analysis and data forecasting

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    Forecasting Sales

    The Vintage Restaurant is located on Captiva Island, a resort community located near Fort Meyers, Florida. The restaurant, which is owned and operated by Karen Payne, has just completed its third year of operation. During this time, Karen has sought to establish a reputation for the restaurant as a high-quality dining establishment that specializes in fresh seafood. The efforts made by Karen and her staff have proved successful, and her restaurant has become one of the best and fastest-growing restaurants on the island.
    Karen has concluded that.in order to plan better for the growth of the restaurant in the future, it is necessary to develop a system that will enable her to forecast food and beverage sales by month for up to I year in advance. Karen has available data on the total food and beverage sales that were realized during the previous 3 years of operation. These data are provided below.

    Food and Beverage Sales for the Vintage Restaurant ($ 1,000s)

    Month
    First Year
    Second Year
    Third Year

    January
    242
    263
    282

    February
    235
    238
    255

    March
    232
    247
    265

    April
    178
    193
    205

    May
    184
    193
    210

    June
    140
    149
    160

    July
    145
    157
    166

    August
    152
    161
    174

    September
    110
    122
    126

    October
    130
    130
    148

    November
    152
    167
    173

    December
    206
    230
    235

    Managerial Report

    Perform an analysis of the sales data for the Vintage Restaurant. Prepare a report for Karen that summarizes your findings, forecasts, and recommendations. Include information on the following:

    1.A graph of the time series.

    2.An analysis of the seasonality of the data. Include the seasonal indexes for each month, and comment on the high seasonal and low seasonal sales months. Do the seasonal indexes make intuitive sense? Discuss.

    3.Forecast sales for January through December of the fourth year.

    4.Assume that January sales for the fourth year turned out to be $295,000. What was your forecast error? If this is a large error, Karen may be puzzled as to why there is such a difference between your forecast and the actual sales value. What can you do to resolve her uncertainty in the forecasting procedure?

    5.Develop recommendations as to when the system that you have developed should be updated to account for new sales data that will occur.

    6.Include any detailed calculations of your analysis in the appendix of your report.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:26 am ad1c9bdddf
    https://brainmass.com/business/business-management/graphing-seasonality-analysis-and-data-forecasting-457666

    Attachments

    Solution Summary

    The solution illustrates the graph of the time series, data seasonality, and data forecasting. The step-by-step guide on how to do this is described in an spreadsheet file.

    $2.19

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