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if they gave liner regression eq for example
y=180+160x y represent sell while X is the first quarter of 2001 x= 0 the company use additive model the seasonal variation
Q1=-3
Q2=nil
Q3=6
Q4=2
– what is the trend sale in quarter 4 2002
– what is total sell in year 2002
-what is the trend in Q2how can i solve these , i need just the step ?
*quarter 4 X =7 so just add in the eq ? with out adding the seasonal variation
* for total sell should i find x in all for quarter and add the seasonal variation to each quarter the sum all of them ?You put 7 in the formula, and that gives you the trend sale.
Then you adjust by the seasonal variation for quarter 4.thank you so much ,
i didn’t quit understand – trend sell only by put 7 in the formula
put the sale with adjust seasonal variation ?what about total sell should I sum all four quarter sell after adjust the seasonal variation ?
You get the trend for each quarter by putting the quarter number in the equation.
You get the forecast sales for each quarter by taking the trend and adjusting by the seasonal variation.For the total sales you then add up the four quarters.
I am puzzled as to why you are attempting a question for which you do not have an answer. You should be using a Revision Kit from one of the ACCA Approved Publishers (they have answers and explanations 🙂 )
Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Also, I do not know where you found this question, but as I explain in my lectures the seasonal variations using the additive model should add up to zero !!
thank you so much, i really appreciate it
I used one of the revision kit that you mentioned and solve must of the questions , put i didn’t pass the Exam ?? .
I am watching your lectures they are amazing, I like the way that you explain so we don’t have to relay on just memories the formula .
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