Final answer:
To compute a sales forecast, parameters such as base sales, disposable personal income, sales from the prior year, and advertising expenditures are typically considered. Fuel prices can indirectly affect sales but are not a direct parameter for forecasting. The correct options are b, c, d, and e.
Step-by-step explanation:
Computing a sales forecast typically involves analyzing a variety of factors that can influence future sales. These factors help businesses predict how much they are likely to sell in a given period, aiding in planning and resource allocation. The parameters considered for a sales forecast can be quite extensive but usually include:
- Base sales: This is a starting point for predictions, often based on historical sales data.
- Disposable personal income: This refers to the amount of money consumers have available to spend after taxes.
- Sales from the prior year: Past performance can indicate trends and help predict future sales.
- Advertising expenditures: The amount spent on marketing can significantly affect sales.
Other factors such as fuel prices can also have an indirect effect on sales, particularly if they impact the cost of production or the disposable income of consumers. However, the elements listed above are more directly involved in making sales forecasts.
If we refer to an electronics retailer used regression to find a simple model to predict sales growth, we can apply this model to answer specific predictive questions:
- To predict the sales on day 60, we would substitute x with 60 in the equation ŷ = 101.32 + 2.48x, which gives us a prediction of ŷ = 101.32 + (2.48 x 60) = 101.32 + 148.8 = $250.12 thousand.
- Similarly, for day 90, the prediction is ŷ = 101.32 + (2.48 x 90) = 101.32 + 223.2 = $324.52 thousand.
In conclusion, the correct options for parameters considered to compute a sales forecast are b. Base sales, c. Disposable personal income, d. Sales from prior year, and e. Advertising expenditures.