Table 3 Percent change in income Percent Change in appliance sold Quarter Percent change in income Percent Change in appliance sold Quarter 1 -2.3 -2.5 -1.0 1.0 2 -1.5 -1.0 7 0.7 1.4 3 2.8 7.4 8 5.2 3.4 4 0.5 2.6 -2.5 -0.5 5 4.6 8.5 10 1.7 1.8

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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An electronic appliance manufacturer wants to know if there is a relationship between percentage change in deposable personal income which is reported quarterly by the government, and the percentage change in appliances sold by the manufacturer following same years of quarterly data. Brenda Chee and Clarence Paulus lead an analyst team has obtained data for the past 10 quarters. (Hint: Provides your answers in two decimal points)

(a) What forecasting model should be used for this data. Why?

(b) Develop the forecasting model that you have proposed in (a).

(c) Compute the relationship for these data. In your opinion, is the relationship between independent variable strong enough to base a predictive the dependent variable? Explain your answer.

Table 3
Percent change
in income
Percent Change in
appliance sold
Percent change
in income
Percent Change in
appliance sold
Quarter
Quarter
1
-2.3
-2.5
-1.0
1.0
2
-1.5
-1.0
7
0.7
1.4
2.8
7.4
8
5.2
3.4
4
0.5
2.6
9.
-2.5
-0.5
5
4.6
8.5
10
1.7
1.8
Transcribed Image Text:Table 3 Percent change in income Percent Change in appliance sold Percent change in income Percent Change in appliance sold Quarter Quarter 1 -2.3 -2.5 -1.0 1.0 2 -1.5 -1.0 7 0.7 1.4 2.8 7.4 8 5.2 3.4 4 0.5 2.6 9. -2.5 -0.5 5 4.6 8.5 10 1.7 1.8
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