Question: Do not understand how to solve question b. Please explain and show work! 20. Cannister, Inc., specializes in the manufacture of plastic containers. Click the

Do not understand how to solve question b. Please

Do not understand how to solve question b. Please explain and show work!

20. Cannister, Inc., specializes in the manufacture of plastic containers. Click the icon to view the data on the monthly sales of 10-ounce shampoo bottles for the past five years. a. Using the multiplicative seasonal method, calculate the monthly seasonal indices. (Enter your responses rounded to three decimal places.) Average seasonal index 0.693 .737 .811 .888 1.028 Month January February March April May June July August September October November December 1.2 1.115 1.236 1.261 1.231 .979 .823 b. Develop a simple linear regression equation to forecast annual sales. For this regression, the dependent variable, Y, is the demand in each year and the independent variable, X, is the index for the year (i.e., X = 1 for year 1, X = 2 for year 2, and so on until X= 5 for year 5). 10,763.6 + 1,100.6 X. (Enter your responses rounded to one The regression is given by the equation Y = decimal place.) c. Forecast the annual sales for year 6 by using the regression model you developed in part b. 17367 bottles (Enter your response rounded to the nearest whole The forecast of annual sales for year 6 is number.) d. Prepare the seasonal forecast for each month by using the monthly seasonal indices calculated in part a and the forecast of annual sales for year 6 calculated in part c. (Enter your responses rounded to the nearest whole numbers.) Sales 4 2 3 5 1 684 6 (forecast) 1002 683 838 893 972 746 749 826 1067 1174 828 884 918 1285 Year January February March April May June July August September October November December 1488 842 937 1,041 1,195 1,391 1,239 1,449 1,021 1,172 1,101 1,229 910 990 1,095 1,265 1,487 1,422 1,568 1,648 1,660 1,402 1,189 1,081 1,178 1,271 1,459 1,702 1,547 1,621 1,572 1,480 1,118 993 1,090 1,288 1,226 1,362 1,385 1,356 1,065 881 1737 1613 1788 1,252 1,517 1825 1781 1,191 970 1,513 1,169 1,003 1417 763 1190

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!