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Exam P1 All Questions
Exam P1 All Questions

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CIMA Operational P1 Question # 7 Topic 1 Discussion

P1 Exam Topic 1 Question 7 Discussion:
Question #: 7
Topic #: 1

A company is forecasting sales volume using time series analysis. The following equation has been derived from past data and is considered to be a reliable predictor of future sales volume:

y = 20,000+80x

Where y is the total sales units each quarter and x is the time period (the first quarter of year 1 is time period 1).

P1 Question 7

The following set of seasonal variations for each quarter has been calculated using the additive model.

What is the forecast sales units for the second quarter of year 3?


A.

21,200


B.

20,400


C.

21,520


D.

20,720


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