CIMA BA1 · Chapter 11 · Question 9 of 11
Using a multiplicative time series model, the trend value for a quarter is 1,250 units and the seasonal index is 1.12. What is the forecast for the quarter?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 1,400 units
Explanation
In the multiplicative model, forecast = trend x seasonal index = 1,250 x 1.12 = 1,400 units.
More Forecasting: correlation, regression and time series MCQs
- Q11Sales for five consecutive periods were 40, 46, 52, 49 and 55. What is the three-period moving average centred on period 3?
- Q1A correlation coefficient of -0.9 between two variables indicates:
- Q2The correlation coefficient between advertising spend and sales is 0.8. What proportion of the variation in sales is explained by the…
- Q3Five pairs of observations give: sum of x = 15, sum of y = 27, sum of xy = 93, sum of x squared = 55, n = 5. What is the least squares…
- Q4A company's monthly sales (units) are forecast using the trend equation y = 1,200 + 35x, where x is the month number. What is the trend…