Demand Analysis Trends and Forecasting
Not what you're looking for?
A linear trend equation for sales of the form Qt = a + bt was estimated using annual sales data for the period 2000 - 2007 (i.e., t = 2000, 2001, ..., 2007). The results of the regression are as follows:
DEPENDENT QT R Square F Ratio P-Value on F
VARIABLE:
OBSERVATIONS: 8 0.7034 14.23 0.0093
PARAMETER STANDARD
VARIABLE ESTIMATE ERROR T-RATIO P-VALUE
INTERCEPT -23,024,200 8,122,205 -2.83 0.0298
T 12,045 6075 1.98 0.0947
a. Do the estimates indicate a trend in sales? If so, what is the trend in units per year? Explain.
b. What would you forecast sales to be in the year 2008? Explain.
c. What would you forecast sales to be in the year 2010? Explain.
Purchase this Solution
Solution Summary
The solution discusses the demand analysis trends and forecasting.
Solution Preview
We know that the demand is in the form Q = a + bt.
The estimate of a (the intercept) is -23,024,200. This parameter is moderately significant as its p-value is less than 0.05 but greater than ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.