Question: You have been tasked with creating a forecasting model for a product family of sofas at your facility. You are now at the end of
You have been tasked with creating a forecasting model for a product family of sofas at your facility. You are now at the end of Month 36. You searched your demand database and obtained the actual demand for the product family (refer to Table 1 below).
Assignment: Create a linear regression model with seasonality to forecast for Months 37 54.
Submission Requirements:
- Type and submit a Word report to the dropbox with the following: (a) a title page & a second page answering the following questions:
- What is your regression equation?
- What is the Average Seasonal Index for each month (season) of the year? Create a table with your average seasonal indexes (January December).
- What are your forecasts for the next 18 months (37 54)? Create a table with your forecasts (Trend + Seasonality Forecasts).
Table 1: Demand Data for Sofa Product Family
| Period | Month | Demand (units) |
| 1 | Jan. | 1150 |
| 2 | Feb. | 810 |
| 3 | Mar. | 750 |
| 4 | Apr. | 720 |
| 5 | May | 720 |
| 6 | June | 760 |
| 7 | Jul. | 680 |
| 8 | Aug. | 650 |
| 9 | Sep. | 640 |
| 10 | Oct. | 700 |
| 11 | Nov. | 850 |
| 12 | Dec. | 900 |
| 13 | Jan. | 1100 |
| 14 | Feb. | 820 |
| 15 | Mar. | 780 |
| 16 | Apr. | 740 |
| 17 | May | 730 |
| 18 | June | 750 |
| 19 | Jul. | 660 |
| 20 | Aug. | 660 |
| 21 | Sep. | 660 |
| 22 | Oct. | 780 |
| 23 | Nov. | 920 |
| 24 | Dec. | 1280 |
| 25 | Jan. | 1250 |
| 26 | Feb. | 1080 |
| 27 | Mar. | 980 |
| 28 | Apr. | 900 |
| 29 | May | 900 |
| 30 | June | 900 |
| 31 | Jul. | 900 |
| 32 | Aug. | 780 |
| 33 | Sep. | 780 |
| 34 | Oct. | 880 |
| 35 | Nov. | 1170 |
| 36 | Dec. | 1260 |
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