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(Solution) Assignment on Business Statistics

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Added on  2021-06-17

(Solution) Assignment on Business Statistics

   Added on 2021-06-17

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BUSINESS STATISTICSStudent ID:[Pick the date]
(Solution) Assignment on Business Statistics_1
Question 1 Using the given data with regards to time and overtime hours, the regression model has been computed with time as the independent variable and overtime hours as the dependent variable. The relevant output is highlighted below.(a)The regression equation based on the above output is as highlighted below.y=23.20+0.67tWhere y represents overtime hours b) Using the regression line computed above, seasonal indexes need to be computed. This has been done by adhering to the following steps (Hillier, 2016).Step 1: For value of the independent variable t=1 to t=16, the predicted value of y or overtime hours needs to be computed.Step 2: Compute y/ypredicted for each of the 16 values which would result in values for the four years across each quarter.Step 3: Average for each quarter needs to be taken and suitable adjustment needs to be made so to yield the seasonal indexes.The relevant output in this regards is indicated below (Flick, 2015).1
(Solution) Assignment on Business Statistics_2
Hence, based on the above output, seasonal indexes for the Q1, Q2, Q3 and Q4 are 0.9106, 1.2511,1,0462 and 0.7921 respectively.c) Introduction There are several businesses which have a seasonal trend which implies that sales in a particularseasons or financial quarter may be significantly higher than the other. As a result, the associatedcosts would also show a seasonal trend. This is especially the case with businesses which tend tobe based on seasons such as products having higher sales in either summers or winters. Further,the hotels also tend to have high seasonality owing to the difference in occupancy levels in thepeak and lean season (Hair et. al., 2105). This seasonal variation in the business is often capturedthrough the seasonal trend which represents as to which season would witness high business andwhich would witness low business owing to the nature of the business. Typically, seasonalindexes in excess of 1 is representative of above average trends while a value of less than 1would represent lower than average trend (Flick, 2015). In the wake of this background, theobjective of this report is to highlight the key role that the seasonal indexes tend to play in thebusiness decision making.DiscussionThe various spheres of business decision making where seasonal indexes can play a vital role arediscussed below.Forecasting Businesses are essentially forward looking but the same is done taking the empirical trends intocognizance. These empirical trends are essentially captured through the use of seasonal indexessince it highlights the seasonal trends that are visible in the business. Considering that these2
(Solution) Assignment on Business Statistics_3

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