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

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Janine

1 months ago

Woohoo, time to put my mad math skills to the test! This is gonna be a piece of cake. (Or is it pie? I can never remember.)

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Rana

2 days ago

I agree, the forecast for the month using a multiplicative model is 44.44

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Troy

4 days ago

I think the answer is C) 44.44

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Nguyet

1 months ago

I bet the answer is 44.44. It just sounds right, you know? But I should probably double-check my work just in case.

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Ashley

11 days ago

I'm not so sure, I calculated it and got 54.54. Maybe we should double-check our work.

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Jeannetta

18 days ago

I think the answer is 44.44 too. It does seem like the most logical choice.

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Bernardine

1 months ago

Well, this is making my brain hurt. I hope I can remember the right formula for the multiplicative model.

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Demetra

12 days ago

That's correct! The answer is C) 44.44.

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Ocie

17 days ago

So, the forecast for month 21 would be 44.44.

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Leanora

1 months ago

I think we need to use the formula y = (4.38 + 1.32x) * 1.07 for the multiplicative model.

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Curtis

2 months 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!

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Elden

25 days ago

So, y = 4.38 + 1.32 * 21 = 4.38 + 27.72 = 32.10

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Cory

1 months ago

I think we need to plug in x = 21 into the trend equation first.

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Terry

2 months ago

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

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Bernardo

2 months ago

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

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Shoshana

2 months ago

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

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Lilli

2 months ago

I think the answer is B) 54.54.

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