Question

Sales (in thousands) of the new product over the six-week period since its introduction have been as follows:

Week - Sales

a. Develop a three-week moving average for this time series!
b. Compute MSE and forecast for week 7!
c. Using trend projection. What type of pattern exists in the data?
d. Using trend projection.

Answer 1

The predicted sales for day 60 and day 90 using the given regression model are $250.12 thousand and $324.52 thousand respectively.

Step-by-step explanation:

Sales Prediction Using a Regression Model

Based on the regression model ¡ = 101.32 + 2.48x, where x is the day and ¡ is the predicted sales in thousands of dollars, the sales on day 60 can be predicted by substituting x=60 into the model: ¡ = 101.32 + 2.48(60). After calculating, the predicted sales are ¡ = 101.32 + 148.8 which is equal to $250.12 thousand.

Similarly, to predict the sales on day 90, substitute x=90 into the same model: ¡= 101.32 + 2.48(90). The calculation gives us ¡ = 101.32 + 223.2 which sums up to $324.52 thousand.