Task 5 Indexing, Sampling, Time Series

A. The profit of a business for the last eight quarters is given below.
Complete the table below to show the index for the profit figures using
Quarter 1 2017 as the base period. Give your answers to one decimal
place. PC4.1/PC4.2/PC4.3

Profit Index
AED
2020 Quarter 1 86,700 86700/86700 x
100 = 100
Quarter 2 88,200 88200/86700 x
100= 101.7

Quarter 3 93,400 93400/86700 x

100= 107.7
Quarter 4 90,500 90500/86700 x
100 = 104.4
2021 Quarter 1 83,200 83200 / 86700 x
100 = 104.4
Quarter 2 81,400 81400 / 86700 x
100 = 93.9
Quarter 3 83,200 83200 / 86700
x100 = 95.96
Quarter 4 85,000 85000 / 86700 x
100 = 98.0
 B. Seasonal Variations, Trends, Time Series, Market conditions
PC4.1/PC4.2/PC4.3/PC4.4

A juice manufacturing business has used its production costs for the last two years to
identify a trend and monthly seasonal variations. Extrapolating the trend line has
produced estimates of the trend in costs for the months of January to March 2021, and
time series analysis has provided monthly seasonal variations.

Estimated trend Seasonal variations

AED AED
January 205,600 +23,200
February 208,600 +9,230
March 209,200 -3,500

Complete the table to calculate the anticipated production costs for January to March
2021

Month Cost (AED)

January 228800

February 217830
March 205700
a) Write a report to your manager Ayesha Al Kaabi about the trends and make
recommendations PC1.2,/1.4/,4,5/.1,5.2,5.3

REPORT

To: Manager___________________

From: _____Accountant assistant____________

Subject: Recommendation on trends__________

Trends
For the upcoming three months budgeted data it can be seen that there
has been a seasonal variation which caused the costs of January and February to
rise, however there was a decline seen during March 2021. But since the
variations in increase was greater, company might face losses

Recommendations

It is advised for the company to analyze seasonal variation into consideration

before making budgets and after realizing the seasonal variation, they need to
devise some strategy to cut down their costs or by adding value to increase the
sales revenue in order to get profits
 C. Sampling PC4.1
Select a new business idea.
Design a questionnaire for the new business.
Send the questionnaire to respondents.
Identify the method of sampling you chose.

The new business idea is about opening a fast food restaurant “Fatty
Burger”
Since the fast food is mostly popular amongst teens and college going
students and since the fast food chain is mostly targeting middle class
people so feedback from middle class people were taken. There was also
importance given to college and university students to give their feedback
by distributing questionnaire and interviewing them.
Social media were also used as a source of feedback and different colleges
were visited. Along with that, Google forms were used to make the process
less time consuming.