Develop a forecast for the next month using a four-month moving average method.Use the Excel Functions SLOPE and INTERCEPT to write the linear regression prediction equation with Months as the independent variable and sales as the dependent variable.Use the prediction equation to estimate the number of sales in month 9. Consider the following set of time series sales data for a growing company over thepast 8 months:MonthSales15213318422206.237228.21

Answered: Consider the following set of time…

Consider the following set of time series sales data for a growing company over the past 8 months: Month Sales 15 2 13 3 18 4 22 20 6. 23 7 22 8. 21

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 6P: Do the sales prices of houses in a given community vary systematically with their sizes (as measured...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Develop a forecast for the next month using a four-month moving average method.
Use the Excel Functions SLOPE and INTERCEPT to write the linear regression prediction equation with Months as the independent variable and sales as the dependent variable.
Use the prediction equation to estimate the number of sales in month 9.

Consider the following set of time series sales data for a growing company over the
past 8 months:
Month
Sales
15
2
13
3
18
4
22
20
6.
23
7
22
8.
21

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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