Question: A manager of a home improvement store has been using the linear trend multiplicative model to predict the demand for his lawn mowers. The quarterly
A manager of a home improvement store has been using the linear trend multiplicative model to predict the demand for his lawn mowers. The quarterly seasonal indices are S1= 0.85, S2= 0.90, S3= 1.10, and S4= 1.00. The linear trend equation that the manager developed is: Yt= 15 + 6t. The following lawn mower sales have been observed for the most recent nine quarters:
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Comment on the effectiveness of the forecasting method used by the manager of the store.
5 6 7 24 Quarter 4 3 8 36 38 45 Sales 18 33 40 42 32 12 10 2.
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Quarter Sales Y t Trended 1 18 156121 085211785 2 33 156227 0927243 3 40 15... View full answer
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