Quarterly Sales Data (In $10,000) for a Small Company Specializing

question 13

Essay

Quarterly sales data (in $10,000) for a small company specializing in green cleaning products are shown in the time series graph below. A seasonal regression model was fit to these data and the results are shown below. a. Is the seasonal regression model significant overall? Explain.
b. Interpret the regression coefficients in this model.
c. Use this model to provide forecasts for each of the four quarters of the next year.

---

Definitions:

Output

The amount of goods or services produced by a person, machine, business, or industry.

Average Fixed Costs

The total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs dilute as production increases.

Average Total Costs

The total cost of production divided by the number of units produced, reflecting the average cost per unit.

Total Variable Cost

The total of all costs that vary with output level, including materials, labor, and other expenses that increase as production increases.