Question

where s,Annual sales (00 bottles) and s is the index of time periods $-80+15 head of the houschold is a. Are annual sales increasing or decreasing? By how much? b. Predict annual sales for year 6 using the equation MINI-CASEnttp//acadianbakers.com awetis bakery in Houston, Texas. One of its products is a croissant. Acadian buys frozen croissants and frozen goods for more than one week. For orders of more 144 frozen croissants. Acadian has collected its total weekly Acadian Bakers bakes them. For the sake of quality, the company doesn't want to store its than 576 cases, the delivery is free (saving $15 per order). A case contains es for crofssants (in cases) for the last 10 weeks. Management believes that the sales of croissants are increasing Sales Week 461 450 463 458 476 492 482 491 488 488 10 Question Can Acadian take advantage of the quantity discount, and if so when?

Answer 1

First, plot the given data to understand the nature of time-series behavior.

495 490 485 480 475 을 470 465 460 455 450 445 0 1 23 4 56 7 89 10 11 Week

There seems to be a clear linear trend and we can use linear regression for forecasting the sales in future weeks.

Week (x)Sales (y) Obs 212521 461 461 202500 450 9 2143691389 463 2097641832 458 16 2380 226576 476 2420642952 36 492 9 2323243374 482 49 3928 241081 491 238144 4392 488 81 4880 23 8144 2 100 488 3 10 10 2257487 26488 385 4749 Totals 10 Sample size (n) = 368.5 82.5 4.467 9 α/β- Slope (b) Intercept (a) =ỹ-b-- 450.333

The linear regression equation is Sales (Y) = 4.467 * Week (x) + 450.333

So, when will the Sales be 576?

For Y = 576,

x = (576 - 450.33) / 4.467 = 28.1

So, only after 28 weeks, it is possible to enjoy such discount.