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Goodyear Tire and Rubber Company is the ninth largest tire manufacturer in the world. Here are the sales revenues for year 1 through year 5:

Goodyear Tire and Rubber Company is the ninth largest tire manufacturer in the world. Here are the sales revenues for year 1 through year 5:

Year

Revenue (millions)

1

$3,889.9

2

4,066.4

3

4,535.6

4

4,731.8

5

4,498.7

a.When might a manager prefer linear trend technique to simple moving average technique? Explain your answer.

b. Based on MAD for from year 3 to year 5, which method (linear-trend or double exponential smoothing method with a = 0.4 and b = 0.2 (start with initial estimates S1 = $4,867.90 and T1 = $201.5 for the year 1)) provides the better forecasts? Explain. Forecast the sales revenue for year 6 and year 7 based on your preferred method

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