Question 1
A company is preparing its annual budget and is estimating the number of units of Product A that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:
y = a + bx where
y = number of sales units in the quarter a = 10,000 units b = 3,000 units x = the quarter number where 1 = quarter 1 of year 1
Actual sales of Product A in Year 1 were affected by seasonal variations and were as follows:
Quarter 1:14,000 units Quarter2: 18,000 units Quarter 3: 18,000 units Quarter 4: 20,000 units
Calculate the expected sales of Product A (in units) for each quarter of year 2, after adjusting for seasonal variations using the additive model.
The expected sales for year 2 Quarter 4 was 32700 units
The expected sales for year 2 Quarter 4 was 32000 units
The expected sales for year 2 Quarter 4 was 33000 units
The expected sales for year 2 Quarter 4 was 40000 units
Correct answer: B
Explanation:
Reference: https://www.vrelearnonline.com/cima-p1-103-11-ero/
Reference: https://www.vrelearnonline.com/cima-p1-103-11-ero/