# Time Series Analysis and Regression & Seasonal Index

Determining a Seasonal Index

Listed below is the net sales in $ million for Home Depot, Inc. and its subsidiaries from 1993 to 2002.

Year Net Sales

1993 9,239

1994 12,477

1995 15,470

1996 19,535

1997 24,156

1998 30,219

1999 38,434

2000 45,738

2001 53,553

2002 58,247

Determine the least squares equation. On the basis of this information, what are the estimated sales for 2005?

The Appliance Center sells a variety of electronic equipment and home appliances. For the last four years the following quarterly sales (in $ millions) were reported.

Quarter

Year I II III IV

2000 5.3 4.1 6.8 6.7

2001 4.8 3.8 5.6 6.8

2002 4.3 3.8 5.7 6.0

2003 5.6 4.6 6.4 5.9

Determine a typical seasonal index for each of the four quarters.

REGRESSION ANALYSIS

14. Mr. James McWhinney, president of Daniel-James Financial Services, believes there is a relationship between the number of client contacts and the dollar amount of sales. To document this assertion, Mr. McWhinney gathered the following sample information. The X column indicates the number of client contacts last month, and the Y column shows the value of sales ($ thousands) last month for each client sampled.

Number of Contacts, X Sales ($ thousands), Y Number of Contacts, X Sales ($ thousands), Y

14 24 23 30

12 14 48 90

20 28 50 85

16 30 55 120

46 80 50 110

Determine the regression equation.

Determine the estimated sales if 40 contacts are made.

Refer to Exercise above.

a. Determine the standard error of estimate.

b. Suppose a large sample is selected (instead of just 10). About 95 percent of the predictions regarding sales would occur between what two values?

Please use Excel show formula used

https://brainmass.com/statistics/regression-analysis/time-series-analysis-regression-seasonal-index-159165

#### Solution Summary

Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.