Problem 22 The Merry Motel uses the moving average approach to forecast its rooms sales for each week and linear regression for forecasting its food sales. The moving average approach utilizes the most recent five weeks of actual data. An adjustment is made for holidays as follows: If the holiday occurred during the prior five weeks, the week containing the holiday is adjusted by multiplying it by 110 percent If the holiday occurs during the forecast week, the moving average is reduced by 10 percent. The rooms sold for the five preceding weeks were as follows Rooms Rooms Budgeted 660 710 720 710 715 Holidayvs Sold 640 700 710 720 710 Memorial Day (May 30) May 24-31 June 1-7 June 8-14 June 15-21 June 22-28 June 29-July 5 July 4 The average occupancy per room sold is expected to be 1.6 for June 29-July 5