Using Data Visualization for Budgeting

DA10.1 Data Visualization can be used to forecast sales.

Monthly data for Honda unit sales from March 2018 through February 2020 in the United States are presented here.

Date	U.S. Unit Sales
		Mar-18	115,504
Apr-18	100,736
May-18	100,373
Jun-18	103,263
Jul-18	67,546
Aug-18	111,880
Sep-18	98,194
Oct-18	125,425
Nov-18	111,412
Dec-18	83,153
Jan-19	112,116
Feb-19	104,214
Mar-19	107,661
Apr-19	109,068
May-19	113,314
Jun-19	106,267
Jul-19	91,011
Aug-19	102,666
Sep-19	96,735
Oct-19	110,506
Nov-19	84,290
Dec-19	67,168
Jan-20	102,806
Feb-20	99,278

Instructions

There are five parts to this problem. Use Excel or the visualization software of your or your instructors choice to perform the following:

A. Use the Forecast sheet tool to create a line chart to forecast Honda sales for the United States for March through August of 2020. Excel will automatically generate the forecast on a new worksheet. Name the new worksheet Forecast Chart. Include a descriptive chart title and labeled vertical axis on the chart. What does the trend show?

B. What do you know about the COVID-19 pandemic in 2020 that might affect your reliance on the forecast for Honda?

C. How would you use these forecasts if you were budgeting for sales and production at Honda in the US right now? Are there specific types of cars that may sell better than others?

D. What non-quantitative factors should Honda consider in its budgeting process?

E. What do you think are the strengths and limitations of using forecasts in business?