Instruction 14-9
the President of a Chain of Department Stores

question 142

Short Answer

Instruction 14-9
The president of a chain of department stores believes that her stores' total sales have been showing a linear trend since 1980. She uses Microsoft Excel to obtain the partial output below. The dependent variable is sales (in millions of dollars), while the independent variable is coded years, where 1990 is coded as 0, 1991 is coded as 1, etc.
$$\begin{array}{l}\text { SUMMAROUIPUT }\\\begin{array} { l l } \text { Regression Statistics } & \\\text { MultipleR } & 0.604 \\\text { R Square } & 0.365 \\\text { Adjusted R Square } & 0.316 \\\text { standard Error } & 4.800 \\\text { Observations } & 17 \\& \\& \text { Coefílients } \\\text { Intercept } & 31.2 \\\text { Coded Year } & 0.78\end{array}\end{array}$$
-Referring to Instruction 14-9,the forecast for sales (in millions of dollars)in 2010 is _______

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Definitions:

Inventory Costs

Expenses associated with acquiring, storing, and managing goods that a company intends to sell.

Production Department

A segment of a company responsible for the actual production of goods or services, involving tasks such as assembling, refining, or processing.

Responsibility Department

A department within an organization that is held accountable for specific tasks or outcomes, with a focus on managing and reporting its own performance.

Hybrid Costing System

A costing method that combines elements of both job costing and process costing, used for products that have both individual and mass production aspects.