Calculate the regression line and forecast sales


Response to the following problem:

Use the table "Food and Beverage Sales for Jimmys Greek Restaurant" to answer the questions below.

Food and Beverage Sales for Jimmys Greek Restaurant ($000s)

Month              First Year           Second Year

January              242                      263

February            235                      238

March                232                      247

April                  278                      193

May                   284                     193

June                 240                      149

July                   145                     157

August               152                     161

September          110                    122

October              130                     130

November            152                    167

December            236                     231

Part (a) Calculate the regression line and forecast sales for January of Year 3.

Part (b) Calculate the seasonal forecast of sales for January of Year 3.

Part (c) Which forecast do you think is most accurate and why?

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Financial Accounting: Calculate the regression line and forecast sales
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