Question

Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2019. The relevant quarterly data for the previous three years follow: 2016 Quarter 2017 Quarter 2018 Quarter Return Expenses $ 12,750 11,500 11,800 13,900 Return Expenses $ 13,100 12,300 11,900 14,200 Return Expenses $ 13,500 12,500 12,300 14,800 M AWN The result of a simple regression analysis using all 12 data points yielded an intercept of $12,071.21 and a coefficient for the independent variable of $124.30. (R-squared = 0.19, SE = $977.64.) Required: 1. Plot the data in the order of the dates. Return Expense 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 0 2 4 6 8 10 12 14 Quarter

Answer 1

Year Quarter Quarters 2016 Return Expenses 2017 Return Expenses $12,750 $11,500 $11,800 $13,900 $13,100 $12,300 $11,900 $14,200 $13,500 $12,500 $12,300 $14,800 $13,900 $13,100 $14,800 $14,200 $13,500 $12,500 $12,300 $12,750 vya usalama na $12,300 $11,900 $11,500 $11,800 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 2018 B 10 12 14 Quarters