Page 292 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 12

Test your understanding 6

Consider a business with the following actual results in a year:

Year Quarter Actual units Trend Additive Multiplicative
sold variation variation

20X1 1 65 60 5 +8.33%

20X1 2 80 70 10 +14.29%

20X1 3 70 80 –10 –12.50%

20X1 4 85 90 –5 –5.56%

(a) Using the additive model forecast unit sales in each quarter of year 2

Year Quarter Trend Variation Forecast

20X2 1 100 5 105

20X2 2 110 10 120

20X2 3 120 –10 110

20X2 4 130 –5 125

(b) Using the multiplicative model forecast unit sales in each quarter of year
2

Year Quarter Trend Variation Forecast

20X2 1 100 +8.33% 108

20X2 2 110 +14.29% 126

20X2 3 120 –12.50% 105

20X2 4 130 –5.56% 123

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