Hello tutor good day, please I'll like you to assist me with this BPP 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 thousands of units. Given that X = 0 represents 20X0 quarter 1, what are the forecast
sales levels for 20X5 quarter 4?
ANSWER
X = 0 corresponds to 20X0 quarter 1
Therefore X = 23 corresponds to 20X5 quarter 4
Forecast sales = 300 – (4.7 × 23)
= 191.9 = 191,900 units
from my calculations. 20*0 - 20*5 = 6 yrs x 4 quarters =24.
then how did BPP arrive at 23. thanks.
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FORECASTING
9y ago#1For X0 quarter 1, X = 0
So....
For X0 quarter 2, X = 1
For X0 quarter 3, X = 2
For X0 quarter 4, X = 3
If you keep counting like this you will arrive at the fact that for X5 quarter 4, X = 23.
(Your answer would only be correct if for X0 quarter 1, X was equal to 1)
waoo all cleared. thanks John .
9y ago#3You are welcome :-)
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