A a manufacturer of snow chain is considering building a, Ask an Expert

Management Studies

a) A manufacturer of snow chain is considering building a new production plant to cope with growing demand. A tyre firm is interested in investing in the company and has been provided with the following quarterly sales figures:

Unit Sales: 1997-2000 (000s)

Year Q1 Q2 Q3 Q4

1 441.1 397.7 396.1 472.8

2 476.4 454.4 450.8 553.5

3 580.7 573.2 571.6 703.6

4 692.0 676.5 659.9 752,8

1. Calculate the trend line using the moving average method.

2. Estimate and then eliminate the season variation component. In other words find the deseasonalised data.

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Business Management, Management Studies

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