Question

Demand for soccer balls at a new sporting goods store is forecasted using the following regression equation: Y = 98 + 2.2X where X is the number of months that the store has been in existence. Let April be represented by X = 4. April is assumed to have a seasonality index of 1.15. What is the forecast for soccer ball demand for the month of April (rounded to the nearest integer)?

A. 123
B. 107
C. 100
D. 115

Answer 1

B. 107

Explanation:

Demand for soccer balls at a new sporting goods store is forecasted using the following regression equation: Y = 98 + 2.2X where X is the number of months that the store has been in existence. Let April be represented by X = 4. April is assumed to have a seasonality index of 1.15. What is the forecast for soccer ball demand for the month of April (rounded to the nearest integer)?

y = 98 + 2.2x when x = 4

y = 98 + 2.2(4)

y = 98 + 8.8

y = 106.8

A. 123

B. 107

C. 100

D. 115