A statistical program is recommended.

A department store is trying to determine the amount of sales lost while it was shut down during July and August because of damage caused by the Mississippi River flood. Sales data for January through June follow.

forecast for July $

thousand

forecast for August $,$$

thousand

Comment on the use of exponential smoothing for forecasts more than one period into the future.

Exponential smoothing provides exponentially larger forecasts for every period in the future.

Exponential smoothing provides the same forecast for every period in the future.

Exponential smoothing cannot forecast more than two periods into the future.

Exponential smoothing provides exponentially smaller forecasts for every period in the future.

$($b$)$ Use trend projection to forecast sales $($in $$1,000$ s$)$ for July and August. $($Round your answers to two decimal places.$)$

forecast for July $

$

thousand

forecast for August $

thousand

The proposed settlement is fair since it accounts for the downward trend in sales.

The proposed settlement is fair since it covers the forecasts for July and August calculated in part $($b$).$

The proposed settlement is not fair since it does not account for the upward trend in sales. The settlement should be based on the forecasted lost sales calculated in part $($a$).$

The proposed settlement is not fair since it does not account for the upward trend in sales. The settlement should be based on the forecasted lost sales calculated in part $($b$).$