You have been given data that represents sales in (thousands of dollars) for Superlative Online Grocery Inc.,
Question:
You have been given data that represents sales in (thousands of dollars) for Superlative Online Grocery Inc., a relatively new firm offering online shopping services in Superlative. The company wants to use the partial Excel Summary Output and the Time Series data below to develop a regression equation and use seasonal indexes to estimate their sales. Note: time period (t=1, 2, 3, ...)
Coefficients | Standard Error | t Stat | P-value | |
Intercept | 59.3 | 2.740408694 | 17.99002 | 4.49643E-11 |
t | 0.257 | 0.28340632 | 0.731645 | 0.47645435 |
Quarter | Sales | t | y/Y-hat | ||
Year 1 | Q1 | 58 | 59.557 | 0.974 | |
Q2 | 62 | 59.814 | 1.037 | ||
Q3 | 56 | 60.071 | 0.932 | ||
Q4 | 67 | 60.328 | 1.111 | ||
Year 2 | Q1 | 57 | 60.585 | 0.941 | |
Q2 | 61 | 60.842 | 1.003 | ||
Q3 | 56 | 61.099 | 0.917 | ||
Q4 | 70 | 61.356 | 1.141 | ||
Year 3 | Q1 | 59 | 61.613 | 0.958 | |
Q2 | 61 | 61.870 | 0.986 | ||
Q3 | 57 | 62.217 | 0.917 | ||
Q4 | 68 | 62.384 | 1.090 | ||
Year 4 | Q1 | 58 | 62.641 | ||
Q2 | 60 | 62.898 | |||
Q3 | 56 | 63.155 | |||
Q4 | 71 | 63.412 |
Required:
- Calculate the seasonal indexes to three decimal places, show your calculations.
- Forecast the sales in quarter 2 of year 5.
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0133405507
13th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones