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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:
- Find the seasonal indexes for each year, and overall data
- Develop a trend line using the annual sales
- Forecast for year 2020
- Determine the MAD for decomposition method of forecasting (
- Determine MAD using exponential smoothing method with an optimized alpha using data table as well as solver. Show your workings.
- Compare the MAD with that of the decomposition method above
- Describe in what situation the decomposition method is used in comparison to the moving averages methods of forecasting?
- 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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