An electronic appliance manufacturer wants to know if there is a relationship between percentage change in deposable personal income which is reported quarterly by the government, and the percentage change in appliances sold by the manufacturer following same years of quarterly data. Brenda Chee and Clarence Paulus lead an analyst team has obtained data for the past 10 quarters. (Hint: Provides your answers in two decimal points)

An electronic appliance manufacturer wants to know if there is a relationship between percentage change in deposable personal income which is reported quarterly by the government, and the percentage change in appliances sold by the manufacturer following same years of quarterly data. Brenda Chee and Clarence Paulus lead an analyst team has obtained data for the past 10 quarters. (Hint: Provides your answers in two decimal points)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....

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An electronic appliance manufacturer wants to know if there is a relationship between percentage change in deposable personal income which is reported quarterly by the government, and the percentage change in appliances sold by the manufacturer following same years of quarterly data. Brenda Chee and Clarence Paulus lead an analyst team has obtained data for the past 10 quarters. (Hint: Provides your answers in two decimal points)

Table 1

Quarter	% change in income	% Change in appliance sold	Quarter	% change in income	% Change in appliance sold
1	-2.3	-2.5	6	-1.0	1.0
2	-1.5	-1.0	7	0.7	1.4
3	2.8	7.4	8	5.2	3.4
4	0.5	2.6	9	-2.5	-0.5
5	4.6	8.5	10	1.7	1.8

(a) What forecasting model should be used for this data. Why?

(b) Develop the forecasting model that you have proposed in (a)

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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