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Fundamentals of Business Economics
11.3 A company uses a combination of regression analysis and time series analysis to
predict its future sales volumes. The following regression equation has been
found to be a reliable estimate of the company’s deseasonalised sales in units:
y = 5x + 60
Where y is the total sales units and x refers to the accountancy period. Quarterly
seasonal variations have been found to be:
Q1 Q2 Q3 Q4
+15% –20% –5% +10%
What are the seasonally adjusted sales units for accounting period 16
(which is quarter 4)?
A 88 units
B 126 units
C 140 units
D 154 units
11.4 A company uses a combination of regression analysis and time series analysis to
predict its future sales volumes. The following regression equation has been
found to be a reliable estimate of the company’s deseasonalised sales in units:
y = 9,800 + 45x
Where y is the total sales units and x refers to the accountancy period. Quarterly
seasonal variations (using an additive model) have been found to be:
Q1 Q2 Q3 Q4
+1,000 +2,500 –1,300 ?
What are the seasonally adjusted sales units for accounting period 73
(which is quarter 4)?
A 10,285 units
B 10,885 units
C 13,085 units
D 15,285 units
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