Regression

This topic has 7 replies, 3 voices, and was last updated 13 years ago by mulo.

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May 16, 2011 at 1:45 pm #44244
amanambu
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Pls who can help me out in this explaning the generation of 23 in the solution of this question.
Question
Regression analysis was used to find the equation Y = 300-4.7X, where X is time (in quarters) and Y is sales level in thousand of units. Given that X =0 represents 20×0 quarter 1 what are the forecast sales levels for 20×5 quarter 4?
Solution
X =0 corresponds to 20×0 quater 1
therefore X=23 corresponds to 20×5 quarter 4
forecast sales = 300 -(4.7×23)
= 191.9 = 191,900 units.
How did 23 come about.
May 19, 2011 at 4:46 pm #61606
Anonymous
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Are you sure that there is no information missing from the question?
May 19, 2011 at 5:54 pm #61607
amanambu
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i got the question from bpp study text and i didnt leave anything out.
tnks
May 21, 2011 at 11:22 am #61608
amanambu
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hey mwamburi i ve been able to get solution to the question i asked. this is the reason for the 23.
in the question there is 4quarters x 6years (20×0 – 20×5) = 24
less 1 quarter (20×0) = 23.
Do you understand it?
May 21, 2011 at 11:33 am #61609
amanambu
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now i have another question.
Joint process
Two prdts P & Q are created from a joint process. P can be sold immediately after split-off, Q requires further processing into product X before it is in a saleable condition. there are no opening inventories and no working in progress of product P, Q or X. The following data are avaiable for last period.
$
Total joint production costs 350,000
further processing cost of product Q 66,000
product production closing
units inventory units
P 420,000 20,000
X 330,000 30,000
Using the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product X for last period?
May 21, 2011 at 9:31 pm #61610
mulo
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where u got this question?… coz i think there is missing something
May 21, 2011 at 10:34 pm #61611
amanambu
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hi mulo
i got d question from this web page – open tuition. did u download d lecture note/question and answer in open tuition site?
May 23, 2011 at 2:47 am #61612
mulo
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no.. im assuming that 420000 and 330000 are production units
Total production units: P 420000
x 330000
Total units = 750000
joint cost apportioned to Q that is x = 330000/750000 x 350000 = 154000
Total product of x = 66000+154000 = 220000
closing stock of x = production – sales 330000-30000=300000
300000/330000×220000 = 200000
i hope this is how it should be.
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