Quarterly Revenues (In $1,000,000's)for a National Restaurant Chain for a Five-Year

question 40

Essay

Quarterly revenues (in $1,000,000's)for a national restaurant chain for a five-year period were as follows: $$\begin{array} { c c c c c c } \text { Quarter } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } & \text { Year } 5 \\\hline 1 & 33 & 42 & 54 & 70 & 85 \\2 & 36 & 40 & 53 & 67 & 82 \\3 & 35 & 42 & 54 & 70 & 87 \\4 & 38 & 47 & 62 & 77 & 99\end{array}$$
a.Solve for the forecast equation that minimizes the sum of squared error.
b.Forecast the four quarters of year 6.

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Definitions:

Financial Division

A department within a company that handles all financial functions, including accounting, financial reporting, budgeting, and investment planning.

Monetary Forecasts

Predictions regarding the future financial state or economic conditions of a business or the economy, based on current trends and data.

Investment Decisions

The process of deciding where to allocate funds in order to generate the highest possible returns while managing risks.

Shareholder Relations

Activities and policies used by a corporation to communicate, engage, and manage its relationship with its shareholders.