Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › FORECASTING
- This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
- AuthorPosts
- April 25, 2017 at 1:33 am #383561
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 unitsfrom my calculations. 20*0 – 20*5 = 6 yrs x 4 quarters =24.
then how did BPP arrive at 23. thanks.
April 25, 2017 at 7:41 am #383603For X0 quarter 1, X = 0
So….
For X0 quarter 2, X = 1
For X0 quarter 3, X = 2
For X0 quarter 4, X = 3If 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)
April 25, 2017 at 11:46 am #383631waoo all cleared. thanks John .
April 25, 2017 at 3:41 pm #383665You are welcome 🙂
- AuthorPosts
- The topic ‘FORECASTING’ is closed to new replies.