Problem 1: If you use a seasonally adjusted linear regression to forecast sales, then how do you use this information to then plan seasonally adjusted inputs such as materials and labor?

Problem 2: With an example such as hourly labor, would you consider using numbered days of the week as your X variable for some number of days to project your hourly labor need, or would you go higher level with numbered weeks of the year or numbered months of the year, or do something else? Suggest your own approach please to rationalize your response to this real world issue.

Problem 3: Will your business need more cash flow to cover those variable labor and other variable costs before you make the sale and collect the money? How should you plan for that need and then cover it?