Applying Time Series Methodologies Simulation

Applying Time Series Methodologies role model Applying Time Series Methodologies Simulation Memorandum To: Myra Reed, Vice hot seat of Production From: Anna Mathews day of the month: February 6, 2012 Re: anticipate for Denim production and gross tax income ____________________________________________________________ _________________ full Myra, To predict the announce reckon needed, sales is employ as the independent variable because the correlation coefficient between sales and advertising budget shows a strong positive family at 0.96 percentage. In addition, the standard error of prediction victimization sales as the independent variable is 11.00 which is lower than exploitation retail coverage at 24.00, and competitors advertising budget at 18.00 suggests a more accurate prediction. The current market per centum of discolor Inc. is six percent of 40 billion dollars, the sales is anticipate to pass off 2,400 million dollars if the five percent growth accession continues through the fifth year. Using this teaching 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 plume advertising budget must be set at 162 million dollars. With this in mind based on the figures in rewrite to reach the expected sales the company would charter 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 use with a heaviness of 0.9 representing the most recent view an d 0.1 in the previous view. The selective in! formation range for this calculation consists of a six-year period in order to reduce the occurrence of antiquated 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: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay