Finance plus Stats

Data

The data – “Coffee Break” - contains time series monthly data from March 1998 to November 2016. For each of the nine brands of coffee you will have monthly data on: volume of sales (in ’00 tonnes), pricing (in USD) and average price per standard size muffin – an accompaniment for drinking coffee.

Assignment Instructions

By this stage, you should have been assigned one of the nine brands of coffee to analyse.

Through extensive consultation with your director, you have identified 9 key items of interest. These are listed below as questions to be answered. Perform the necessary analyses and write a report explaining your findings to potential readers such as the sales and marketing divisions of your company as well as other industry professionals.

Question 1

Construct a line chart for your given brand of coffee. Comment on any features of interest.

[5 marks]

Question 2

Estimate a model of volume of sales using a trend component. In other words, estimate the following: