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:

5 6 7 24 Quarter 4 3 8 36 38 45 Sales 18 33 40 42 32 12 10 2.


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.

Step by Step Solution

3.50 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Quarter Sales Y t Trended 1 18 156121 085211785 2 33 156227 0927243 3 40 15... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Operations Management Questions!