Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[4]

Use Table 1 and lines 24–26. Calculate the:

  • mean seasonal variation for quarter 3 [2]
  • forecast sales for quarter 3 in 2021, using a forecast trend of $86 560. [2]
(b)[2]

Use lines 20–21. Calculate the income elasticity of demand (YED) for JGS tours among the people of country K.

(c)[12]

Use your answers to 2(a) and (b), together with any other relevant information. Discuss whether sales forecasts based on past sales of JGS are likely to be accurate.

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