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A firm specializes in producing recreational equipment's. To forecast future sales based on an analysis of its past pattern of sales, the firm has collected

A firm specializes in producing recreational equipment's. To forecast future sales based on an analysis of its past pattern of sales, the firm has collected the information as below:

Sales ('0000$) Q1 Q2 Q3 Q4
2015 16 21 9 18
2016 15 20 10 18
2017 17 24 13 22
2018 17 25 11 21
2019 18 26 14 25

Answer the questions below:

  1. Find the seasonal indexes for each year, and overall data
  2. Develop a trend line using the annual sales
  3. Forecast for year 2020
  4. Determine the MAD for decomposition method of forecasting (
  5. Determine MAD using exponential smoothing method with an optimized alpha using data table as well as solver. Show your workings.
  6. Compare the MAD with that of the decomposition method above
  7. Describe in what situation the decomposition method is used in comparison to the moving averages methods of forecasting?
  8. A few managers are arguing to use only the recent two years' data to be used, while a few others were arguing to use all five years. What is the ethical dilemma in these arguments, and what is the business dilemma in these arguments? (max 2-3 one line bullets each dilemma)

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