Question

Many supply managers use a monthly reported survey result known as the purchasing managers' index (PMI) as a leading indicator to forecast future sales for their businesses. Suppose that the PMI and your business sales data for the last 10 months are shown in the table and graph below PMI vs Sales PMI Sales (in $000 43 43.1 41.5 38.5 40.5 45.2 46.2 48.1 122 124 125 123 119 120 125 127 135 136 140 135 130 125 120 115 y 1.0529x+ 78.421 R20.6474 Sales (in $000) Linear (Sales (in $000)) 49 53 30 35 40 45 50 PMI Assume that the manager developed a projected sales for a certain month whose PMI is 50. Using this PMI value, the projected sales is 131.065 (S000). If the index for that month is 130, what is the seasonalized forecast for that month? Answer:

Answer 1