Determine the forecasting problems

Assignment Help Business Management

Reference no: EM1369755

Forecasting problems

Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for their particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 10 years and was reduced to the data that follow:

Year Sales/Unit Price/Unit Advertising
(Thousands) ($000)

1996 400 280 600
1997 700 215 835
1998 900 211 1,100
1999 1,300 210 1,400
2000 1,150 215 1,200
2001 1,200 200 1,300
2002 900 225 900
2003 1,100 207 1,100
2004 980 220 700
2005 1,234 211 900
2006 925 227 700
2007 800 245 690

Perform a regression analysis based on these data using Excel®. Answer the following questions based on your results.

1. Which variable, price or advertising, has a larger effect on sales and how do you know?

2. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $300 per unit and the amount spent on advertising (in thousands) was $900.

Reference no: EM1369755

Questions Cloud

Show the problem formulation and identification : Consider the most favorable aspects of each style discussed to describe a process by which a problem can be identified and described to stakeholders in a manner that is sensitive to their perspectives.

Comparative static analysis : Mr. Capon is a butcher who recently increased price of steak at his market from $1:50 pound to $2 a pound. Correspondingly his sales dropped from 200 pounds a day to 100 pounds a day.

Forecasting problem for tracking signals : Forecasting Problem for Tracking Signals - Discuss tracking signals for each and what the implications

Explain what are the most important factors a successful : Explain what are the most important factors to be taken into account for a successful M and A

Determine the forecasting problems : Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $300 per unit and the amount spent on advertising (in thousands) was $900.

Find the equation of dominant firm total revenue : A market total demand is given through P = 80-(z/2). This market is supplied by a dominant firm & by other, relatively "small firms". The small company total supply is given by P=4y.

Training and development case study : Write a minimum paper in which you develop a training program for this client and include the type of analysis that you may need to conduct to develop the program, the major components of the program, and how you might evaluate the program's effect..

Explain after six months she was unable to make payment : Explain After six months she was unable to make those payment and RBC filed suit against her under the original promissory note

Negative effects of politics on governmental leadership : Public Administration - What are the positive and negative effects of politics on governmental leadership? What is the effect of media on leaders in government?

User Account

All Pages