Page 285 - P1 Integrated Workbook STUDENT 2018
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Supplementary objective test questions
4.6 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 × 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
4.7 A company is forecasting the energy costs for period 5 using the following past
data values:
Machine Cost
hours $
Period 1 53,253 679,257
Period 2 45,713 615,417
Period 3 58,613 739,257
If price levels are expected to remain unchanged in Period 15, the
expected energy cost of 50,000 machine hours is closest to:
A $656,572
B $642,641
C $559,500
D $480,000
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