Seasonal Indexes: Multiplicative Model
Not what you're looking for?
The monthly sales volume (in thousands of dollars) for a manufacturer of snow skis is seasonal (there tend to be more skis sold during fall and winter months than during warmer months). The following table shows the monthly seasonal indexes for the company's sales:
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1.17 1.03 0.90 0.74 0.62 0.55 0.63 0.93 1.18 1.32 1.52 1.40
Using several years of sales data, beginning in May of 2001 (i.e., t=1 corresponds to May of 2001), the manufacturer summarized that the trend line that describes the monthly sales (in thousands of dollars) has the form Tt =578+4T. Assuming that a multiplicative model can be used to describe the sales data, generate a forecast for the total dollar sales the company can expect to receive in August of 2006.
Express your answer in thousands of dollars.
Purchase this Solution
Solution Summary
This solution involves a forecast generated based on a multiplicative model of sales data.
Purchase this Solution
Free BrainMass Quizzes
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.