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BigBox Ltd is a medium sized firm that manufactures boxes. The firm is busy with sales forecasting for 2019. Over the past four years, the company...
BigBox Ltd is a medium sized firm that manufactures boxes. The firm is busy with sales
forecasting for 2019. Over the past four years, the company has mostly seen substantial
growth. The management of the firm wants to get an idea of what sales they can expect over
the coming year. They are of the opinion that the firm will continue to grow steadily as it
regularly gets stable government contracts. Over the past five years, it sales were as follows:
BigBox Ltd. sales 2013 - 2018 (R'000's):
2013 2015 2016 2017 2018
42 55 62 78 86
At the moment, there is a discontinuity between management and the accountant of the firm.
The management have been basing their estimations in the average growth per year, which,
according to the accountant has been found to be inaccurate. The management tasked you
to come up with a better, but objective, estimation of sales for 2019.
Required:
Evaluate the past sales and use regression analysis using your HP10BII+ calculator or any
other suitable tool, to create a very brief report and estimation as required. Discuss:
How the regression was done (1 Marks)
The slope of the regression (2 Marks)
Forecasted sales for 2018 (1 Marks)
