Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
6th Edition
ISBN: 9781337115186
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 17.4, Problem 26E
Giovanni Food Products produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $10 million over the past 10 years. But increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown.
- a. Construct a time series plot. Comment on the appropriateness of a linear trend.
- b. Develop a quadratic trend equation that can be used to forecast revenue.
- c. Using the trend equation developed in part (b), forecast revenue in year 11.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
United Dairies, Inc., supplies milk to several independent grocers throughout DadeC ounty, Florida. Managers at United Dairies want to develop a forecast of the number ofhalf gallons of milk sold per week. Sales data for the past 12 weeks are:
a. Construct a time series plot. What type of pattern exists in the data?b. Use exponential smoothing with a 5 0.4 to develop a forecast of demand for week 13.What is the resulting MSE?
In retail, a store manager uses time series models to understand shopping trends.
Review the scatter plot of the store’s sales from 2010 through 2021 to answer the questions. See attached as image.
Here is the data for Fiscal Year and Sales:
Fiscal Year
Sales
2010
$260,123.00
2011
$256,853.00
2012
$274,366.00
2013
$290,525.00
2014
$322,318.00
2015
$380,921.00
2016
$541,925.00
2017
$909,050.00
2018
$1,817,521.00
2019
$3,206,564.00
2020
$4,921,005.00
2021
$5,686,338.00
Time series decomposition seeks to separate the time series (Y) into 4 components: trend (T), cycle (C), seasonal (S), and irregular (I). What is the difference between these components?
The model can be additive or multiplicative. When do you use each?
Review the scatter plot of the exponential trend of the time series data. Do you observe a trend? If so, what type of trend do you observe?
What predictions might you make about the store’s annual sales over the next few years?
the values of alabama building contracts (in $ millions) for a 12-month period follow.240 350 230 260 280 320 220 310 240 310 240 230a. construct a time series plot. What type of pattern exists in the data?
Chapter 17 Solutions
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
Ch. 17.2 - 1. Consider the following time series...Ch. 17.2 - 2. Refer to the time series data in exercise 1....Ch. 17.2 - Prob. 3ECh. 17.2 - 4. Consider the following time series...Ch. 17.3 - Consider the following time series...Ch. 17.3 - Consider the following time series...Ch. 17.3 - Refer to the gasoline sales time series data in...Ch. 17.3 - Prob. 8ECh. 17.3 - 9. With the gasoline time series data from Table...Ch. 17.3 - 10. With a smoothing constant of α = .2, equation...
Ch. 17.3 - For the Hawkins Company, the monthly percentages...Ch. 17.3 - Corporate triple-A bond interest rates for 12...Ch. 17.3 - The values of Alabama building contracts (in $...Ch. 17.3 - The following time series shows the sales of a...Ch. 17.3 - Ten weeks of data on the Commodity Futures Index...Ch. 17.3 - Prob. 16ECh. 17.4 - Consider the following time series...Ch. 17.4 - Prob. 18ECh. 17.4 - Prob. 19ECh. 17.4 - Prob. 20ECh. 17.4 - Prob. 21ECh. 17.4 - Prob. 22ECh. 17.4 - The president of a small manufacturing firm is...Ch. 17.4 - The following data shows the average interest rate...Ch. 17.4 - Quarterly revenue ($ millions) for Twitter for the...Ch. 17.4 - Giovanni Food Products produces and sells frozen...Ch. 17.4 - The number of users of Facebook from 2004 through...Ch. 17.5 - Consider the following time series.
Construct a...Ch. 17.5 - Consider the following time series...Ch. 17.5 - The quarterly sales data (number of copies sold)...Ch. 17.5 - Air pollution control specialists in southern...Ch. 17.5 - South Shore Construction builds permanent docks...Ch. 17.5 - Prob. 33ECh. 17.5 - Prob. 34ECh. 17.6 - Consider the following time series...Ch. 17.6 - Refer to exercise 35.
Deseasonalize the time...Ch. 17.6 - The quarterly sales data (number of copies sold)...Ch. 17.6 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Air pollution control specialists in southern...Ch. 17.6 - Electric power consumption is measured in...Ch. 17 - The weekly demand (in cases) for a particular...Ch. 17 - The following table reports the percentage of...Ch. 17 - United Dairies, Inc., supplies milk to several...Ch. 17 - Annual retail store revenue for Apple from 2007 to...Ch. 17 - The Mayfair Department Store in Davenport, Iowa,...Ch. 17 - Prob. 47SECh. 17 - The Costello Music Company has been in business...Ch. 17 - Consider the Costello Music Company problem in...Ch. 17 - Prob. 50SECh. 17 - Refer to the Costello Music Company time series in...Ch. 17 - Prob. 52SECh. 17 - Refer to the Hudson Marine problem in exercise 52....Ch. 17 - Refer to the Hudson Marine problem in exercise...Ch. 17 - Refer to the Hudson Marine data in exercise...Ch. 17 - Forecasting Food and Beverage Sales
The Vintage...Ch. 17 - The Carlson Department Store suffered heavy damage...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Table 6 shows the year and the number ofpeople unemployed in a particular city for several years. Determine whether the trend appears linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 5 people?arrow_forwardThe Seneca Children’s Fund (SCC) is a local charity that runs a summer camp for disadvantagedchildren. The fund’s board of directors has been working very hard over recentyears to decrease the amount of overhead expenses, a major factor in how charities arerated by independent agencies. The following data show the percentage of the money SCChas raised that was spent on administrative and fund-raising expenses over the last sevenyears. a. Construct a time series plot. What type of pattern exists in the data?b. Use simple linear regression analysis to find the parameters for the line that minimizesMSE for this time series.c. Forecast the percentage of administrative expenses for year 8.d. If SCC can maintain its current trend in reducing administrative expenses, how longwill it take SCC to achieve a level of 5 percent or less?arrow_forwardthe costello Music company has been in business for five years. during that time, salesof pianos increased from 12 units in the first year to 76 units in the most recent year. Fredcostello, the firm’s owner, wants to develop a forecast of piano sales for the coming year.the historical data follow.Year 1 2 3 4 5Sales 12 28 34 50 76a. construct a time series plot. What type of pattern exists in the data?b. develop the linear trend equation for the time series. What is the average increase insales that the firm has been realizing per year?c. Forecast sales for years 6 and 7.arrow_forward
- 1. Make a scatter plot of the table provided in the image. B. Write a linear/exponential equation that models this table provided in the image. C. Explain what the slope/multiplier means in the context of the problem. E. Use your model to predict when there will be 100 new casesarrow_forwardCryptocurrencies have rapidly become an important alternative to traditional currencies for many types of transactions. Etherium, one of the most prominent cryptocurrencies, has rapidly appreciated in value. Daily Etherium trading information for the first 332 days of 2021. It includes the following variables: Date Day – Day of the year, used to assess trend over time Volume (US $) – Daily trading volume Opening Price (US $) – Opening price for daily trading Price Change (US $) – Daily change in price from opening to close 1. Determine the sample correlation coefficient, r, between Volume and Price Change. Test the alternative hypothesis that Volume has a linear relationship to Price Change. Specifically, what are the test statistic and the p-value for that test statistic? For α = .05, what do you conclude about the relationship between the variables? (reminder: the T.DIST.2T function requires input of a positive test statistic)arrow_forwardThe accompanying data represent health care expenditures per capita (per person) as a percentage of the U.S. gross domestic product (GDP) from 2007 to 2013. Gross domestic product is the total value of all goods and services created during the course of the year Complete parts (a) through (c) below. Click the icon to view the data table. (a) Construct a time-series plot that a politician would create to support the position that health care expenditures are increasing and must be slowed. Choose the correct graph below OD. O C. OB OA A Q A Q Q 25,000+ 11,000 Q Q 3 2 G HIER 11200 2H 7,000++ C 2013 of + 2013 2007 2007 Year Year Year (b) Construct a time-series plot that the health care industry would create to refute the opinion of the politician. Choose the correct graph below. OB. O C. O A. A Q A Q 11,000 Q (C) 7,000+ 201 20 7.000+++++++* 2007 2007 2013 2013 Year Year (c) Explain how different measures may be used to support two completely different positions. Choose the correct answer…arrow_forward
- hudson Marine has been an authorized dealer for c&d marine radios for the past sevenyears. the following table reports the number of radios sold each year.Year 1 2 3 4 5 6 7Number Sold 35 50 75 90 105 110 130a. construct a time series plot. does a linear trend appear to be present?b. Using Minitab or excel, develop a linear trend equation for this time series.c. Use the linear trend equation developed in part (b) to develop a forecast for annualsales in year 8.arrow_forwardAnita Limited has shared their annual sales revenue over the last 6 financial years from 2015 to 2020. Year Sales ($ 000) 2015 4500 2016 5100 2017 4900 2018 5400 2019 5670 2020 6000 You are required to; a) Using linear trend equation forecast the sales revenue of Anita Limited for 2021. Note: See the formula sheet on the next page. P.S.: I can't attach the formula sheet in this because it has variuos symbols, such as Sigma, log, x value etc. I uploaded the formula sheet and the question as well in the chat box. Please let me know if you need any more information.arrow_forwardThe median home value in Louisiana and New Jersey (adjusted for inflation) are shown below. Year Louisiana New Jersey 1950 31100 63100 2000 85000 170800 If we assume a linear trend existed before 1950 and continues after 2000, the two states' median house values will be (or were) equal in what year? (The answer might be absurd) The yeararrow_forward
- the data contained in the datafile named crudecost shows the U.S. refiner acquisition cost of crude oil in dollars per barrel (energy information administration website,February 3, 2014).a. construct a time series plot. What type of pattern exists in the data?arrow_forwardThe median home value in Indiana and Vermont (adjusted for inflation) are shown below. Year Indiana Vermont 1950 37700 38000 2000 94300 111500 If we assume that the house values are changing linearly,In which state have home values increased at a higher rate? If these trends were to continue, what would be the median home value in Indiana in 2010? $ _______If we assume the linear trend existed before 1950 and continues after 2000, the two states' median house values will be (or were) equal in what year? (The answer might be absurd)The year____________arrow_forwardSuppose the following table shows the approximate price of a certain stock in December of each year from 2005 through 2014, as well as the 4-year moving averages for 2005 through 2007.† Complete the table by computing the remaining 4-year moving averages. (Note the peak in 2007 and the drop in subsequent years.) Round each average to the nearest dollar.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
The Shape of Data: Distributions: Crash Course Statistics #7; Author: CrashCourse;https://www.youtube.com/watch?v=bPFNxD3Yg6U;License: Standard YouTube License, CC-BY
Shape, Center, and Spread - Module 20.2 (Part 1); Author: Mrmathblog;https://www.youtube.com/watch?v=COaid7O_Gag;License: Standard YouTube License, CC-BY
Shape, Center and Spread; Author: Emily Murdock;https://www.youtube.com/watch?v=_YyW0DSCzpM;License: Standard Youtube License