TABLE 17.26 SALES FOR CARLSON DEPARTMENT STORE (SMILLIONS) Month Year 1 Year 2 Year 3 Year 4 Year 5 January February March 1.45 1.80 2.03 2.31 1.89 2.02 2.31 2.56 2.28 2.69 1.99 2.42 2.45 2.57 2.42 2.40 2.50 2.09 April May June 1.99 2.32 2.20 2.23 2.39 2.14 2.27 2.21 1.89 2.48 2.73 2.37 2.13 2.43 July August September October 2.31 2.23 1.71 1.90 1.90 2.74 2.13 2.56 4.16 2.29 2.83 2.54 2.97 4.35 November December 4.20 4.04 TABLE 17.27 DEPARTMENT STORE SALES FOR THE COUNTY (S MILLIONS) Month Year 1 Year 2 Year 3 Year 4 Year 5 43.80 January February March April Мay June 46.80 46.80 48.00 48.00 48.60 59.40 58.20 45.60 57.60 53.40 56.40 51.60 57.60 58.20 60.00 57.60 61.80 60.60 60.00 55.20 58.20 56.40 52.80 54.00 57.00 57.60 July August September October November December 51.00 63.00 57.60 58.80 49.80 60.60 47.40 61.80 55.80 69.00 54.60 67.80 56.40 53.40 71.40 54,60 75.00 71.40 65.40 85.20 117.60 114.00 102.00 100.20 121.80

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Topic Video
Question

Forecasting Lost Sales

The Carlson Department Store suffered heavy damage when a hurricane struck on August 31. The store was closed for four months (September through December), and Carlson is now- involved in a dispute with its insurance company about the amount of lost sales during the time the store was closed. Two key issues must be resolved : (1) the amount of sales Carlson would have made if the hurricane had not struck and (2) whether Carlson is entitled to any compensation for excess sales due to increased business activity after the storm. More than $8 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses.

Table 17.26 gives Carlson's sales data for the 48 months preceding the storm . Table 17.27 reports total sales for the 48 months preceding the storm for all department stores in the county,as well as the total sales in the county for the four months the Carlson Department Store was closed. Carlson's managers asked you to analyze these data and develop estimates of the lost sales at the Carlson Department Store for the months of September through December. They also asked you to determine whether a case can be made for excess storm-related sales during the same period. If such a case can be made, Carlson is entitled to compensation for excess sales it would have earned in addition to ordinary sales.

Managerial Report

Prepare a report for the managers of the Carlson Department Store that summarizes your findings, forecasts,and recommendations. Include the following:

1. An estimate of sales for Carlson Department Store had there been no hurricane.

2.An estimate of countywide department store sales had there been no hurricane.

3.An estimate of lost sales for the Carlson Department Store for September through December.

In addition, use the countywide actual department stores sales for September through December and the estimate in part (2) to make a case for or against excess storm-related sales.

TABLE 17.26 SALES FOR CARLSON DEPARTMENT STORE (SMILLIONS)
Month
Year 1
Year 2
Year 3
Year 4
Year 5
January
February
March
1.45
1.80
2.03
2.31
1.89
2.02
2.31
2.56
2.28
2.69
1.99
2.42
2.45
2.57
2.42
2.40
2.50
2.09
April
May
June
1.99
2.32
2.20
2.23
2.39
2.14
2.27
2.21
1.89
2.48
2.73
2.37
2.13
2.43
July
August
September
October
2.31
2.23
1.71
1.90
1.90
2.74
2.13
2.56
4.16
2.29
2.83
2.54
2.97
4.35
November
December
4.20
4.04
Transcribed Image Text:TABLE 17.26 SALES FOR CARLSON DEPARTMENT STORE (SMILLIONS) Month Year 1 Year 2 Year 3 Year 4 Year 5 January February March 1.45 1.80 2.03 2.31 1.89 2.02 2.31 2.56 2.28 2.69 1.99 2.42 2.45 2.57 2.42 2.40 2.50 2.09 April May June 1.99 2.32 2.20 2.23 2.39 2.14 2.27 2.21 1.89 2.48 2.73 2.37 2.13 2.43 July August September October 2.31 2.23 1.71 1.90 1.90 2.74 2.13 2.56 4.16 2.29 2.83 2.54 2.97 4.35 November December 4.20 4.04
TABLE 17.27 DEPARTMENT STORE SALES FOR THE COUNTY (S MILLIONS)
Month
Year 1
Year 2
Year 3
Year 4
Year 5
43.80
January
February
March
April
Мay
June
46.80
46.80
48.00
48.00
48.60
59.40
58.20
45.60
57.60
53.40
56.40
51.60
57.60
58.20
60.00
57.60
61.80
60.60
60.00
55.20
58.20
56.40
52.80
54.00
57.00
57.60
July
August
September
October
November
December
51.00
63.00
57.60
58.80
49.80
60.60
47.40
61.80
55.80
69.00
54.60
67.80
56.40
53.40
71.40
54,60
75.00
71.40
65.40
85.20
117.60
114.00
102.00
100.20
121.80
Transcribed Image Text:TABLE 17.27 DEPARTMENT STORE SALES FOR THE COUNTY (S MILLIONS) Month Year 1 Year 2 Year 3 Year 4 Year 5 43.80 January February March April Мay June 46.80 46.80 48.00 48.00 48.60 59.40 58.20 45.60 57.60 53.40 56.40 51.60 57.60 58.20 60.00 57.60 61.80 60.60 60.00 55.20 58.20 56.40 52.80 54.00 57.00 57.60 July August September October November December 51.00 63.00 57.60 58.80 49.80 60.60 47.40 61.80 55.80 69.00 54.60 67.80 56.40 53.40 71.40 54,60 75.00 71.40 65.40 85.20 117.60 114.00 102.00 100.20 121.80
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Discrete Probability Distributions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman