CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 85 Discussion

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

Question #: 85
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

A car dealer uses the following trend equation to estimate the number of cars sold each quarter

Y = 120 + 3t

Where y = number of cars sold each quarter and t = time period expressed in units

What is the forecasted number of cars sold in period 12. if there is an additive seasonal factor of 55?

A156

B101

C211

D139

Show Suggested Answer

Suggested Answer: C

by Carli at Apr 21, 2024, 04:48 AM

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Dorathy

1 years ago

I agree, the answer is A) 156.

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Mohammad

1 years ago

And with an additive seasonal factor of 55, the forecasted number of cars sold in period 12 would be 156.

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Beatriz

1 years ago

Right, so Y = 120 + 3(12).

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Dorathy

1 years ago

So, for period 12, t would be 12.

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Mohammad

1 years ago

Yes, the equation is Y = 120 + 3t.

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Beatriz

1 years ago

I think we need to use the trend equation to find the forecasted number of cars sold in period 12.

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Oneida

1 years ago

That's correct, considering the additive seasonal factor of 55.

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Georgene

1 years ago

The forecasted number of cars sold in period 12 is 156.

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