Question 87 2 points Given the following information and usi

Question 87 (2 points) Given the following information and using Time-Series Analysis, forecast high sales for the 4th quarter, of the next year: Prior year Sales = $10,000,000; Business Cycle Index = 1.10; 4th Quarter Seasonal Index = 1.15; Trend Index = 1.08; Error + - 5%. $13,662,000 $14,345,100 $3,415,500 $3,586,275 None of the above

Solution

As per given informatiom:

                            prior year sales is:10,000,000

                           calculating high sales in 4 th quater is

             by time-serice analysis:high sales in 4 th quater is:

           =10,000,000/4=2500000*1.10(busines cycle index)*1.15(4 th quarter seasonal index)*1.08(trend index)

          =3,415,500