Question: Following are the data on demand for white bread loaves at a bakery. Day Loaves 1 195 2 213 3 219 4 225 5 230
Following are the data on demand for white bread loaves at a bakery. Day Loaves 1 195 2 213 3 219 4 225 5 230 6 235 7 249 8 255 9 254 10 263 11 278 12 278 13 281 14 289 15 314 a. Develop a linear trend equation for the above data on demand for white bread loaves at a bakery (use of Excels Trendline, with display Equation on chart option, is recommended), and use it to forecast demand on day 16. (Round the final answers to 2 decimal places.) Y = x + Forecast demand on day 16 b. The variations around the linear trend line seem to have above- and below-the-line runs. Therefore, use trend-adjusted exponential smoothing with = 0.4 and = 0.3 to model the bread demand. Use the first four days to estimate the smoothed initial trend that you use for periods 4 and 5 (use the increase from day 1 to day 4 divided by 3). Also, use A4 to estimate S4. Start forecasting day 5. What is the forecast for day 16? (Round the final answers to 2 decimal places.) Period TAFt 5 6 7 8 9 10 11 12 13 14 15 16 Forecast for day 16
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