Case study-south pole ice cream company


Task: South Pole Ice Cream Company

Month sales (x $100.000) of the South Pole Cream Company are shown in the following Table.

Month                         2005                2006                2007

Jan.                              2.30                 2.65                 3.30

Feb.                             2.60                 2.80                  3.60

Mar.                             2.70                 3.00                  3.60

April                            2.85                 3.20                   4.20

May                             3.25                 3.85                   4.20

June                             3.30                 3.90                  5.00

July                              3.25                 3.80                     -

Aug.                             3.35                 3.90                     -

Sept.                            3.20                 3.60                     -

Oct.                              3.10                 3.55                     -

Nov.                              2.75                 3.30                    -

Dec.                              2.65                 3.20                    -


1. Plot the data on a graph with time on the horizontal axis and sales (in hundred thousands ) on the vertical axis.

2. Fit a linear trend equation to the data using the least-squares method. (Note: This Calculation can be made using either a calculator or a computer.)

3. Base on your answers to Question 2, forecast (seasonal unadjusted) sales for each of the last six months of 2007.

4. Calculate seasonally adjusted monthly sales by the ratio-to trend method for the last six months of 2007.

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Macroeconomics: Case study-south pole ice cream company
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