Applying Time Series Methodologies Simulation

Applying Time Series Methodologies theoretical account Applying Time Series Methodologies Simulation Memorandum To: Myra Reed, Vice hot seat of Production From: Anna Mathews fancy: February 6, 2012 Re: anticipate for Denim production and gross gross ____________________________________________________________ _________________ full Myra, To predict the announce reckon needed, gross revenue is apply as the independent variable because the correlation coefficient between sales and advertising budget shows a strong positive consanguinity at 0.96 per centum. In addition, the standard error of prediction victimisation sales as the independent variable is 11.00 which is lower than apply retail coverage at 24.00, and competitors advertising budget at 18.00 suggests a more accurate prediction. The current market theatrical role of discolor Inc. is six percent of 40 billion dollars, the sales is anticipate to pass off 2,400 million doll ars if the five percent growth accession continues through the fifth year. Using this discipline 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 tick advertising budget must be set at 162 million dollars. With this in mind based on the figures in indian lodge to reach the expected sales the company would exhaust 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 utilise with a heaviness of 0.9 representing the most recent view and 0.1 in the previous view. The selective information range for this calculation consists of a six-year period in order to reduce the occurrence of obsolescent trends and violations that no longer hire to the market. Predictions: Quarter Sales in millions Units in millions Current Forecast of Units in mill ions 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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