Consider PepsiCo€™s quarterly net sales as shown in Table 14.4.5.
a. Draw a time-series plot for this data set. Describe any trend and seasonal behavior that you see.
b. Plot the moving average values on the same graph as the original data. Comment on what you see.
c. Find the seasonal index for each quarter. Which is generally the best quarter for PepsiCo? About how much larger are net sales in this quarter, as compared to a typical quarter?
d. Plot the seasonally adjusted series with the original data.
e. Find the regression equation to predict the long-term trend in seasonally adjusted sales for each time period, using 1, 2,€¦for the X variable.
f. Does PepsiCo show a significant trend (either up or down) over this time period as indicated by the regression analysis in the previous part of this problem?
QUESTION CONTINUE TO NEXT PAGE€¦€¦

Transcribed Image Text:

TABLE 14.4.5 Quarterly Net Sales for PepsiCo Year 1996 1996 1996 1996 1997 1997 1997 1997 1998 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 Net Sales (millions) $4,053 5,075 5,159 6,050 4,213 5,086 5,362 6,256 4,353 5,258 5,544 7,193 5,114 4,982 4,591 5,680 4,191 4,928 4,909 6,410