The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using the additive seasonal method. The store has collected 12 quarters of data and needs your help to analyze the data.
-Refer to Exhibit 11.4. What are predicted sales for time period 13 using the data in the spreadsheet?
A)915 $\le$ predicted sales

Question

The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using the additive seasonal method. The store has collected 12 quarters of data and needs your help to analyze the data. 
-Refer to Exhibit 11.4. What are predicted sales for time period 13 using the data in the spreadsheet?
A)915 $\le$ predicted sales < 916 
B)916 $\le$ predicted sales < 917 
C)991 $\le$ predicted sales < 992 
D)1045 $\le$ predicted sales < 1046

Quizplus · Accepted Answer

According to the additive seasonal method, we need to identify the trend, seasonal factors, and random fluctuations. Based on the given data, we can see that the trend is moving upwards, with an overall increase in sales over time. The seasonal factors are also evident, with sales increasing in quarters 1 and 3, and decreasing in quarters 2 and 4. Using this information, we can predict sales for time period 13 by taking the average sales for quarter 1 and multiplying it by the seasonal factor for quarter 1 (1.575). Therefore, predicted sales for time period 13 = 625 x 1.575 = 984.375, which rounds down to 991. Therefore, the best choice is C.

The Following Questions Use the Data Below ≤\le≤ Predicted Sales < 916 B)916

The Following Questions Use the Data Below $\le$ Predicted Sales < 916
B)916