Data collected on the yearly demand for 50-pound bags of fertilizer at Sunshine Garden Supply are shown in the following table.

Year Demand for Fertilizer (1,000s of Bags)

1……………………………….4

2……………………………….7

3……………………………….5

4……………………………….5

5………………..…………….10

6……………………………….7

7……………………………….8

8……………………………….9

9…………………...………….11

10…………………………….14

11…………………………….15

1. Develop a three-year moving average to forecast sales in year 12.

2. Develop a 3-year weighted average to predict demand in year 12, in which sales in the most recent year is given a weight of 2 and sales in the two years prior to that are each given a weight of 1.

3. Develop a regression/trend line to estimate the demand for fertilizer in year 12.

4. Based on the three forecasts you have created, which forecast is the most accurate?

Answer rating: 100% (QA)

1 We have forecast a demand of 1333 for yr 12 2 Next period 1375 so thi... View the full answer