Question: A linear trend forecast is shown below (round b & a to two decimals): t Y t*Y t 2 1 19 19 1 2 18
A linear trend forecast is shown below (round b & a to two decimals):
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| t | Y | t*Y | t2 |
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| 1 | 19 | 19 | 1 | |
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| 2 | 18 | 36 | 4 | |
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| 3 | 15 | 45 | 9 | |
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| 4 | 20 | 80 | 16 | |
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| 5 | 18 | 90 | 25 | |
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| 6 | 22 | 132 | 36 | |
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| 7 | 20 | 140 | 49 | |
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| 28 | 132 | 542 | 140 |
For Sept., t = 8, and Yt = 16.86 + 0.50(8) = 20.86 = 20,860
c. The linear trend approach seems to be the least appropriate because the data appear to vary around an average of about 19 [18.86] and because the slope is close to zero (0.50).
d. Sales are reflective of demand (i.e., no stockouts or backorders occurred).
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