Mindtapv2.0 For Anderson/sweeney/williams/camm/cochran's Modern Business Statistics With Microsoft Excel, 1 Term Printed Access Card (mindtap Course List)
6th Edition
ISBN: 9780357110638
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Textbook Question
Chapter 17.5, Problem 32E
South Shore Construction builds permanent docks and seawalls along the southern shore of Long Island, New York. Although the firm has been in business only five years, revenue has increased from $308,000 in the first year of operation to $1,084,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars.
- a. Construct a time series plot. What type of pattern exists in the data?
- b. Use the following dummy variables to develop an estimated regression equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. Based only on the seasonal effects in the data, compute estimates of quarterly sales for year 6.
- c. Let Period = 1 to refer to the observation in quarter 1 of year 1; Period = 2 to refer to the observation in quarter 2 of year 1; … and Period = 20 to refer to the observation in quarter 4 of year 5. Using the dummy variables defined in part (b) and Period, develop an estimated regression equation to account for seasonal effects and any linear trend in the time series. Based upon the seasonal effects in the data and linear trend, compute estimates of quarterly sales for year 6.
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Here is the data for Fiscal Year and Sales:
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the costello Music company has been in business for five years. during that time, salesof pianos increased from 12 units in the first year to 76 units in the most recent year. Fredcostello, the firm’s owner, wants to develop a forecast of piano sales for the coming year.the historical data follow.Year 1 2 3 4 5Sales 12 28 34 50 76a. construct a time series plot. What type of pattern exists in the data?b. develop the linear trend equation for the time series. What is the average increase insales that the firm has been realizing per year?c. Forecast sales for years 6 and 7.
Chapter 17 Solutions
Mindtapv2.0 For Anderson/sweeney/williams/camm/cochran's Modern Business Statistics With Microsoft Excel, 1 Term Printed Access Card (mindtap Course List)
Ch. 17.2 - 1. Consider the following time series...Ch. 17.2 - 2. Refer to the time series data in exercise 1....Ch. 17.2 - Prob. 3ECh. 17.2 - 4. Consider the following time series...Ch. 17.3 - Consider the following time series...Ch. 17.3 - Consider the following time series...Ch. 17.3 - Refer to the gasoline sales time series data in...Ch. 17.3 - Prob. 8ECh. 17.3 - 9. With the gasoline time series data from Table...Ch. 17.3 - 10. With a smoothing constant of α = .2, equation...
Ch. 17.3 - For the Hawkins Company, the monthly percentages...Ch. 17.3 - Corporate triple-A bond interest rates for 12...Ch. 17.3 - The values of Alabama building contracts (in $...Ch. 17.3 - The following time series shows the sales of a...Ch. 17.3 - Ten weeks of data on the Commodity Futures Index...Ch. 17.3 - Prob. 16ECh. 17.4 - Consider the following time series...Ch. 17.4 - Prob. 18ECh. 17.4 - Prob. 19ECh. 17.4 - Prob. 20ECh. 17.4 - Prob. 21ECh. 17.4 - Prob. 22ECh. 17.4 - The president of a small manufacturing firm is...Ch. 17.4 - The following data shows the average interest rate...Ch. 17.4 - Quarterly revenue ($ millions) for Twitter for the...Ch. 17.4 - Giovanni Food Products produces and sells frozen...Ch. 17.4 - The number of users of Facebook from 2004 through...Ch. 17.5 - Consider the following time series.
Construct a...Ch. 17.5 - Consider the following time series...Ch. 17.5 - The quarterly sales data (number of copies sold)...Ch. 17.5 - Air pollution control specialists in southern...Ch. 17.5 - South Shore Construction builds permanent docks...Ch. 17.5 - Prob. 33ECh. 17.5 - Prob. 34ECh. 17.6 - Consider the following time series...Ch. 17.6 - Refer to exercise 35.
Deseasonalize the time...Ch. 17.6 - The quarterly sales data (number of copies sold)...Ch. 17.6 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Air pollution control specialists in southern...Ch. 17.6 - Electric power consumption is measured in...Ch. 17 - The weekly demand (in cases) for a particular...Ch. 17 - The following table reports the percentage of...Ch. 17 - United Dairies, Inc., supplies milk to several...Ch. 17 - Annual retail store revenue for Apple from 2007 to...Ch. 17 - The Mayfair Department Store in Davenport, Iowa,...Ch. 17 - Prob. 47SECh. 17 - The Costello Music Company has been in business...Ch. 17 - Consider the Costello Music Company problem in...Ch. 17 - Prob. 50SECh. 17 - Refer to the Costello Music Company time series in...Ch. 17 - Prob. 52SECh. 17 - Refer to the Hudson Marine problem in exercise 52....Ch. 17 - Refer to the Hudson Marine problem in exercise...Ch. 17 - Refer to the Hudson Marine data in exercise...Ch. 17 - Forecasting Food and Beverage Sales
The Vintage...Ch. 17 - The Carlson Department Store suffered heavy damage...
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- Table 6 shows the year and the number ofpeople unemployed in a particular city for several years. Determine whether the trend appears linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 5 people?arrow_forwardUsing the following time series data of U.S. new car sales ($ millions), respond to the following items. (The data is sourced from https://www.census.gov/retail/index.html#mrts. Find “Monthly Retail Trade Report,” then select “Time Series/Trend Charts” to find the data for U.S. new car sales.). Year $ Sales (Millions) 2009 486,565 2010 549,473 2011 608,788 2012 672,550 2013 735,374 2014 785,142 2015 842,122 2016 877,743 2017 911,157 2018 943,538 b. Test for autocorrelation using the 0.05 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Year $ Sales (Millions) Predicted Residuals Lagged Residuals Squared Difference Squared Residuals 2009 486,565 2010 549,473 2011 608,788 2012 672,550 2013 735,374 2014 785,142 2015 842,122 2016 877,743 2017 911,157 2018 943,538…arrow_forwardThe Seneca Children’s Fund (SCC) is a local charity that runs a summer camp for disadvantagedchildren. The fund’s board of directors has been working very hard over recentyears to decrease the amount of overhead expenses, a major factor in how charities arerated by independent agencies. The following data show the percentage of the money SCChas raised that was spent on administrative and fund-raising expenses over the last sevenyears. a. Construct a time series plot. What type of pattern exists in the data?b. Use simple linear regression analysis to find the parameters for the line that minimizesMSE for this time series.c. Forecast the percentage of administrative expenses for year 8.d. If SCC can maintain its current trend in reducing administrative expenses, how longwill it take SCC to achieve a level of 5 percent or less?arrow_forward
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