Applying Time Series Methodologies Simulation

Applying Time Series Methodologies dissimulation Applying Time Series Methodologies Simulation Memorandum To: Myra Reed, Vice hot seat of Production From: Anna Mathews interpret: February 6, 2012 Re: anticipate for Denim production and gross tax income ____________________________________________________________ _________________ full Myra, To predict the announce reckon needed, gross revenue is employ as the independent variable because the correlation coefficient between sales and advertising budget shows a strong positive relationship at 0.96 per centum. In addition, the standard error of prediction utilize sales as the independent variable is 11.00 which is lower than victimisation retail coverage at 24.00, and competitors advertising budget at 18.00 suggests a more accurate prediction. The current market grant of discolor Inc. is six percent of 40 billion dollars, the sales is anticipate to pass off 2,400 million dollars i f the five percent growth accession continues through the fifth year. Using this reading the value for y (advertising budget) is 162 million dollars. This provides the company with the information that in enounce to spend the 2,400 million dollars in sales the mint advertising budget must be set at 162 million dollars. With this in mind based on the figures in tack together to reach the expected sales the company would ready to produce an intermediate of 47 million units per quarter.

To determine the fluctuations in the market a 2-period weighed moving average model is employ with a heaviness of 0.9 representing the most recent view and 0.1 in the previous view. The selective inf ormation range for this calculation consists! of a six-year period in order to reduce the occurrence of rare trends and violations that no longer hire to the market. Predictions: Quarter Sales in millions Units in millions Current Forecast of Units in millions 1 512 10.24 12 2 636...If you want to get a full essay, order it on our website: OrderEssay.net

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