To plan factory staffing levels, Luke’s Surfboards, needs to forecast sales for the next two quarters.

Sales of surfboards for the last five years are shown below in millions of dollars. These data are available in the worksheet C9 Excel P38 Data in MindTap.

a. Use the Moving Average Excel template to find the best moving average model with k = 2, 3, 4, and 5 periods.

b. Using the best moving average model found in (a), what are the quarterly forecasts for year six, assuming that actual sales in each quarter will equal forecasted sales?

c. If actual sales for quarter 1, 2, and 3 for Year 6 were $8.4, $7.6, and $9.2 million, what is the sales forecast for the fourth quarter?

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Year, Quarter 1, Q1 1, Q2 1, Q3 1, Q4 2, Q1 2, Q2 2,Q3 2, Q4 3, Q1 3, Q2 3, Q3 3,04 4, Q1 4, Q2 4, Q3 4, Q4 5, Q1 5, Q2 5, Q3 5, Q4 Time (X) 1 NM + 2 5 6 7 8 8 = 6 10 11 12 13 14 15 16 17 18 19 20 Sales $ (Y) 2 4 5 4 3 5 7 5 4 8 9 6 5 8 10 6 6 7 9 7