Question $1$: An analyst must decide between two different forecasting techniques for weekly

sales of inline skates: a linear trend equation and the naive approach. The linear trend equation is

st $=124+2t,$ and it was developed using data from periods $1$ through $10.$ Requirements: Based

on data for periods $11$ through $19$ as shown below, show which of the forecasting technique has

greater accuracy? a$)$ Perform demand forecast for periods $12-19$ using the na$$ve method. b$)$

Perform demand forecast for periods $11-19$ using the given linear trend equation. c$)$ Compute

MAD $($mean absolute deviation$)$ and determine which forecast technique is better.

Period $($t$)$ Units Sold

$11147$

$12148$

$13151$

$14145$

$15155$

$16152$

$17155$

$18157$

$19160$

Question $2$: The manager of Snyder's Garden Center must make the annual purchasing plans for

rakes, gloves, and other gardening items. One of the items the company stocks is FastGrow, a

liquid fertilizer. The sales of this item are seasonal, with peaks in the spring, summer, and fall

months. Quarter demand $($in cases$)$ for the past two years follows:

If the expected sales for Fast$-$Grow are $1,150$ cases for year $3,$ use the multiplicative seasonal

method to prepare a forecast for each quarter of the year.

Requirements: $($a$)$ Compute the seasonal relatives, and $($b$)$ determine the forecast for each quarter

of year $3.$

Quarter Year $1$ Year $2$

$14060$

$2350440$

$3290320$

$4210280$

Tota l $8901100$