Problem 1
Sales data for Doomed International Co. are as follows:
|
Year
|
Annual Sales
(millions)
|
|
|
|
1
|
98.0
|
|
2
|
85.1
|
|
3
|
77.9
|
|
4
|
74.2
|
|
5
|
59.3
|
|
6
|
46.7
|
Using simple linear regression analysis, calculate forecast for Year 8.
Problem 2
Historical demand for a product is as follows:
|
DEMAND
|
|
April
|
60
|
|
May
|
55
|
|
June
|
75
|
|
July
|
75
|
|
August
|
89
|
|
September
|
76
|
Using a simple three-month moving average, calculate a forecast for October.
Using single exponential smoothing with a=0.2 and July forecast = 80, calculate a forecast for October.