CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 82
Topic #: 1

Based on the past twenty months, an event decorating company develops a trend equation for forecasting sales revenue (y) where y = 4.38 + 1.32x.

If month 21 has a seasonal factor of times 1.07, then what is the forecast for the month, using a multiplicative model? Give your answer to two decima places.

A34.34

B54.54

C44.44

D64.64

Show Suggested Answer

Suggested Answer: A

by Larae at Mar 09, 2024, 10:02 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Curtis

4 days ago

Okay, let's see... The trend equation is y = 4.38 + 1.32x, and the seasonal factor is 1.07. Time to plug and chug!

upvoted 0 times

...

Terry

7 days ago

Hmm, this looks like a tricky one. I'll need to carefully work through the math to get the right answer.

upvoted 0 times

...

Bernardo

14 days ago

I calculated it too, and I also got B) 54.54 as the forecast.

upvoted 0 times

...

Shoshana

15 days ago

I agree with Lilli, the seasonal factor of 1.07 should increase the forecast.

upvoted 0 times

...

Lilli

17 days ago

I think the answer is B) 54.54.

upvoted 0 times

...