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Lexon Inc.is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting

Lexon Inc.is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2019. The relevant quarterly data for the previous three years follow:

image text in transcribedimage text in transcribed
Return Expense 17,000 Tools 16,000 n 15,000 curve 1 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 0 2 4 6 8 10 12 14 Quarter2016 Return 2017 Return 2018 Return Quarter Expenses Quarter Expenses Quarter Expenses $ 13, 900 $ 14, 300 $ 14, 800 12, 600 13, 400 13, 700 AWNP AWNP AWNH 12, 900 13, 000 13, 500 15, 200 15, 600 16, 300

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