Quarterly sales figures for the Cavill Pump Company, in thousands, for the past four years are shown in the following table:

(a) Forecast the demand for the first quarter of year 5 by using a four-period moving average model.
(b) What is the linear trend equation that best fits the data? Forecast the demand for the first quarter of year 5 by using this equation.
(c) Which method is more accurate?

Transcribed Image Text:

QUARTER YEAR YEAR2 YEAR3 YEAR 4 S263 $300 $312 $323 245 $298 S283 $320 $365 $398 S319 $303 $339 $368 S381 $390