Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells them to retail stores. They are conducting an inventory control study of all their items. The following data for the year 2006 are for one such item, which is not seasonal. MonthJanFebMarAprMayJunJulAugSales1518141219101115 Use trend projection to estimate the relationship between time and sales (state thetrend line equation in this problem). Show the calculations of the intercept and the slope. Interpret the meaning of the intercept and the slope in this problem. Calculate forecasts for March 2007, May 2007, and June 2008

Ans) Basic Table Calculation: Mean and other Calculation: Linear Equation:

Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells them to retail stores. They are conducting an inventory control study of all their items. The following data for the year 2006 are for one such item, which is not seasonal. Month Jan Feb Mar Apr May

Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells them to retail stores. They are conducting an inventory control study of all their items. The following data for the year 2006 are for one such item, which is not seasonal. Month Jan Feb Mar Apr May

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 28P: The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present...

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Question

Favors Distribution Company purchases small imported trinkets in bulk, packages

them, and sells them to retail stores. They are conducting an inventory control study of all their

items. The following data for the year 2006 are for one such item, which is not seasonal.


Month	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug
Sales	15	18	14	12	19	10	11	15

Use trend projection to estimate the relationship between time and sales (state the

trend line equation in this problem). Show the calculations of the intercept and the slope.

Interpret the meaning of the intercept and the slope in this problem.
Calculate forecasts for March 2007, May 2007, and June 2008

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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