Reference no: EM13807583
The Lockit Company manufactures door knobs for residential homes and apartments. Lockit is considering the use of simple (single-driver) and multiple regression analyses to forecast annual sales because previous forecasts have been inaccurate. The new sales forecast will be used to initiate the budgeting process and to identify more completely the underlying process that generates sales. Larry Husky, the controller of Lockit, has considered many possible independent variables and equations to predict sales and has narrowed his choices to four equations. Husky used annual observations from 20 prior years to estimate each of the four equations. Following are a definition of the variables used in the four equations and a statistical summary of these equations:
St= Forecasted sales in dollars for Lockit in period t
St-1 = Actual sales in dollars for Lockit in period t - 1
Gt= Forecasted U.S. gross domestic product in period t
Gt-1 = Actual U.S. gross domestic product in period t - 1
Nt-1 = Lockit's net income in period t - 1
Required:
1. Write Equations 2 and 4 in the form Y = a + bx.
2. If actual sales are $1,500,000 in 2009, what would be the forecasted sales for Lockit in 2010?
3. Explain why Larry Husky might prefer Equation 3 to Equation 2.
4. Explain the advantages and disadvantages of using Equation 4 to forecast sales.
|
Application on morality and social responsibility
: Application on Morality and Social Responsibility
|
|
Feedback on any final requests
: Your work with UWEAR and PALEDENIM has been completed. You have sent an e-mail to the client requesting feedback on any final requests before you close the project. Tom Tramlin, the chief executive officer (CEO), has sent you the following e-mail ..
|
|
Explain the function of input controls
: Explain the function of input controls. Identify four (4) types of input control and explain the function of each. Provide an example of a data integrity error that could occur if each of these types of input control were not in place
|
|
Problems of .medelian genetics related issues
: The actual results consisted of 152 yellow peas. Is the result unusually high? What does this result suggest about Mendel's theory?
|
|
Definition of variables used in four equations
: Husky used annual observations from 20 prior years to estimate each of the four equations. Following are a definition of the variables used in the four equations and a statistical summary of these equations:
|
|
Human elements in it strategy
: For this assignment, you will continue to work on the Human Elements in IT Strategy document by creating a summary of how people, processes, and technologies are related to the overall success of the IT organization
|
|
Question regading the supply chain management
: Supply chain management is the integration of activities that procure materials and services, transform them into intermediate goods and final products, and deliver them to customers.
|
|
Write paper on historical background and growth of chocolate
: Write a paper about Historical Background and growth of Chocolate. There are many different types of chocolate companies, this industry could help with increasing jobs in underdeveloped job markets.
|
|
Potential problems with traditional overhead allocation
: Four potential problems with a "traditional" overhead allocation. List and describe four potential problems with a "traditional" overhead allocation system.
|