questions

split-splat

New Member
I have 2 questions for a class that I am working on. The first one, I did and thought it was right but am now starting to doubt my answer!

1. Listed below is the net sales in $million for Home Depot, Inc. and its subsidiaries from 1993 to 2002. Year Net Sales Time 1993 9,239 1 1994 12,477 2 1995 15,470 3 1996 19,535 4 1997 24,156 5 1998 30,219 6 1999 38,434 7 2000 45,738 8 2001 53,553 9 2002 58,247 10 Determine the least squares equation. On the basis of this information, what are the estimated sales for 2005? Least sqares equation Y' = -716.667 + 5713.36t Estimated sales for 2005 is$73,557.01.

This second one, I'm at a loss. I figured the ratio to moving average for each quarter, but I don't know where to go from there.

2. Sales of roof material, by quarter, since 1997 for Carolina Home Construction, Inc. are shown below (in \$000).

Year Quarter
I II III IV
1997 210 180 60 246
1998 214 216 82 230
1999 246 228 91 280
2000 258 250 113 298
2001 279 267 116 304
2002 302 290 114 310
2003 321 291 120 320

1. Determine the typical seasonal patterns for sales using the ratio-to-moving-average method.
2. Deseasonalize the data and determine the trend equation.
3. Project the sales for 2004, and then seasonally adjust each quarter.

Thank you in advance for any assistance!!!

JohnM

TS Contributor
Your answers to the first question look good.

On the second one, my background in time-series and seasonal adjustments is pretty limited, but I'll look around if I get a chance and get back to you.

split-splat

New Member
almost done

If anyone is still reading this . . .

I did all of the second problem except determining the trend equation. Can someone please explain how I go about doing that??

thanks again