A Time Series Is Shown in the Table Below $\quad$

question 73

Essay

A time series is shown in the table below: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text{Week}$
$\begin{array} { | l | c c c c | } \hline \text { Day } & 1 & 2 & 3 & 4 \\\hline \text { Monday } & 16 & 15 & 18 & 21 \\\text { Tuesday } & 22 & 21 & 20 & 25 \\\text { Wednesday } & 20 & 23 & 20 & 24 \\\text { Thursday } & 29 & 28 & 32 & 28 \\\text { Friday } & 35 & 31 & 29 & 36 \\\hline\end{array}$ a. Compute the five-day moving averages to remove the seasonal and random variation.
b. Calculate the seasonal (daily) indexes.
c. What do the daily indexes tell us?
d. Find the regression trend line.
e. Calculate the seasonal indexes, based on the regression trend line developed in (d).

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Definitions:

QBO

Stands for QuickBooks Online, a cloud-based accounting software designed for small to medium-sized businesses.

Accounting Records

Documents and ledgers that capture all the financial transactions of a business, serving as a foundation for financial reporting.

Physical Count

The act of manually counting inventory on hand to verify records and ensure accuracy in reporting assets.

Non-Inventory

Items or services a company sells or uses in its operations that are not held in inventory, such as supplies, subscriptions, or services.