a. Plot the monthly data. b. Forecast September sales volume using the following: 1) A linear regression 2) A 6-month moving average 3) Exponential smoothing with a smoothing constant equal to 0.20 and assuming a March forecast of 600,000. 4) The naïve approach 5) A weighted average using 0.7 for Dec, 0.2 for November and 0.1 for October. 6) Correlation Which mothod in hl the MOST appropriate method to be used? Why?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3. Covid Co. has the following monthly sales in 2020:
Sales (000 units)
Month
Sales (000 units)
Month
January
567
July
522
February
231
August
752
March
610
September
645
April
309
October
229
May
736
November
456
June
380
December
700
a. Plot the monthly data.
b. Forecast September sales volume using the following: 1) A linear regression 2) A
6-month moving average 3) Exponential smoothing with a smoothing constant
equal to 0.20 and assuming a March forecast of 600,000. 4) The naïve approach 5) A
weighted average using 0.7 for Dec, 0.2 for November and 0.1 for October. 6)
Correlation
c. Which method in b) is the MOST appropriate method to be used? Why?
Transcribed Image Text:3. Covid Co. has the following monthly sales in 2020: Sales (000 units) Month Sales (000 units) Month January 567 July 522 February 231 August 752 March 610 September 645 April 309 October 229 May 736 November 456 June 380 December 700 a. Plot the monthly data. b. Forecast September sales volume using the following: 1) A linear regression 2) A 6-month moving average 3) Exponential smoothing with a smoothing constant equal to 0.20 and assuming a March forecast of 600,000. 4) The naïve approach 5) A weighted average using 0.7 for Dec, 0.2 for November and 0.1 for October. 6) Correlation c. Which method in b) is the MOST appropriate method to be used? Why?
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