The Monthly Sales (In Hundreds of Dollars) of a Company

question 24

Essay

The monthly sales (in hundreds of dollars) of a company are listed below. $$\begin{array} { | c | c | } \hline \text { Month } & \text { Sales } ( \mathbf { \$ 1 0 0 s } ) \\\hline \text { January } & 12,354 \\\hline \text { February } & 13,657 \\\hline \text { March } & 14,536 \\\hline \text { April } & 13,478 \\\hline \text { May } & 16,590 \\\hline \text { June } & 19,790 \\\hline \text { July } & 17,987 \\\hline \text { August } & 18,657 \\\hline \text { September } & 19,765 \\\hline \text { October } & 18,678 \\\hline \text { November } & 20,678 \\\hline \text { December } & 23,675 \\\hline\end{array}$$
a. Construct a time series plot. What type of pattern exists in the data?
b. Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series.
c. What is the sales forecast (in hundreds of dollars) for next month?

Understand the effect of sunk costs on investment decisions.

Analyze investment viability based on cash flow projections and interest rates.

Understand the concept of fixed, variable, and marginal costs in business operations.

Calculate contribution margin and understand its significance for pricing and profitability.

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Definitions:

Radial

Pertaining to a radius or radial direction, often referring to anatomy, such as radial arteries or radial nerves.

Carpal Tunnel

A narrow passageway in the wrist bounded by bones and a ligament, which can be compressed in carpal tunnel syndrome, affecting nerve function.

Median

A statistical measure representing the middle value in a data set, where half the numbers are greater and half are less.

Ulnar

Pertaining to the ulna, one of the two long bones in the forearm, or relating to structures adjacent to it.