Sales forecasting model

Buy ready-to-submit essays. No Plagiarism Guarantee

Note: Our papers are 100% human-written.

SBI, Inc. has estimated the following regression model of sales using 250 weekly sales figures representing the firm’s sales history over the past 5 years:
lnSt = 6.561 + 0.06t, R2 = 0.99
(0.03) (0.02)

Where St is unit sales in time period (week) t and the numbers in parenthesis are the standard deviations of the two regression coefficients.

a. Express this sales forecasting model in the form of the constant rate of change growth model with continuous compounding:
St = S0egt (Please see attachment for proper equation)
i.e. determine the values for S0 and g in this case.

b. Forecast the value of t at which sales will equal 4,000 units.
© BrainMass Inc. brainmass.com March 21, 2019, 10:29 am ad1c9bdddf
https://brainmass.com/business/business-management/sales-forecasting-model-15289
Attachments

sbi_prob.doc

Solution Preview

See attached file

a. Express this sales forecasting model in the form of the constant rate of change growth model with continuous compounding:
St = S0egt
i.e. determine the values for S0 and …