Consider the following set of time series sales data for a growing company over the past 8 months:
Month Sales
1 15
2 14
3 18
4 24
5 20
6 25
7 23
8 20
- Construct a time series plot. What type of pattern exists?
- Develop a forecast for the next month using a four-month moving average method.
- Develop a forecast for the next month using the averaging method.
- Develop a forecast for the next month using the naïve last-value method.
- Use the Excel Functions SLOPE and INTERCEPT to write the linear regression prediction equation with Months as the independent variable and sales as the dependent variable.
- Use the prediction equation to estimate the number of sales in month 9.