Question
Question 31 (50 points) Rajesh is running a bakery in downtown Kitchener, were he has operated in the past ten years. His volume of sales
Question 31 (50 points) Rajesh is running a bakery in downtown Kitchener, were he has operated in the past ten years. His volume of sales has been very steady with an upward slope due to the population increase in the city. He is trying to forecast his sales for the next 6 months. In the past he has used historical data and the moving average method to forecast with satisfactory results. Since the recently various wars in different regions of the world has begun, there is a very real probability that the city may host a sizeable number of new immigrants in the next few months. Please explain to Rajesh, how he should forecast his sales. a) Identify the method he should use and why? b) explain which category of forecasting methods is more appropriate (i.e. associative or time series)
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