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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Quantitative analysis in budgeting
Sir, refer to Chapter 11, two concepts of high low method and learning curve were learned. How about the additive model and multiplicative model in considering the time series? What is the implication of these two models? Please explain more. Thank you.
For Q.196 in the Practice and Revision kit.
TS=T x SV, what does it mean? T = Trend? SV = seasonal variation? TS = sales? I do not understand what the question asking for as actual sales were $520 and $630 in quarter 1 and quarter 2 respectively. Trend values??
Time series analysis (and correlation and regression) are both revision from Paper MA (was F3) and there are full lectures on them in the Paper MA section of this website (and in the lectures I do explain the difference (and reasons for) the additive and the multiplicative models).
You do not need to use symbols in the exam to do your workings.
Using the multiplicative model, the forecast for the actual total sales is the trend forecast multiplied by the seasonal variation. In this question we know the actual total sales and we know the seasonal variation. Therefore we simply work backwards to calculate what the trend was (i.e. what the sales would be if there had been no seasonal variation).
Sir, except for Chapter 11, some of the topics are dealing with % or in decimal places; if the question not mentioned round up to the nearest ?? or ?? decimal places; how can we tackle with? Different decimal places taken will get a different answer, especially for those multiple-choice questions. Any advice?
Thank you