1. Consider the following historical data gathered by a retail store:
Month.........Mar......Apr......May......Jun......Jul......Aug
Demand........18........16.........16........14.......12......14
Use a simple moving average with n = 4 to forecast demand for November.
a. 14.0
b. 15.33
c. 15.6
d. 18.4
2. Consider the following historical data gathered by a retail store:
Month .........Mar......Apr......May......Jun......Jul......Aug
Demand.........19.......15.........17.......15.......13. ......12
Use linear regression (assuming b0 = 21.92, b1 = -1.23, and January is month one) to forecast demand for September.
a. 7.16
b. 12.12
c. 13.64
d. 10.85