Application 1 – 30 points
The company “PEP Ltda.” presents information about its inventory and sales costs, both in thousands of pesos and on a semi-annual basis from 2015 to 2018. This information is presented in the following table:
Semester Costs (X) Sales (Y)
S1 – 2020 $12,000 $40,200
S2 – 2020 $15,000 $45,000
S1 – 2021 $11,250 $38,000
S2 – 2021 $13,350 $39,500
S1 – 2022 $17,400 $46,000
S2 – 2022 $13,800 $38,000
S1 – 2023 $15,750 $44,300
S2 – 2023 $14,400 $37,800
a) Determine the equation that estimates sales for the following periods using the MCO method. Determine and interpret the coefficients and the general and individual analysis of the regression (10 points).
b) Suppose that the company generates a net profit equal to 20% of sales. If information is available on inventory costs for the next 3 years, determine the net profit obtained by the company for each period (20 points).
Semester Costs (X)
S1 – 2024 $16,500
S2 – 2024 $17,400
S1 – 2025 $18,000
S2 – 2025 $18,750
S1 – 2026 $19,650
S2 – 2026 $20,550