Question
Solve all; When James and Deena Weltee built The Glass Slipper, they had a vision of the ultimate dining experience. As the view of surrounding
Solve all;
When James and Deena Weltee built The Glass Slipper, they had a vision of the ultimate dining experience. As the view of surrounding mountains was breathtaking, a high priority was placed on having large windows and providing a spectacular view from anywhere inside the restaurant. Special attention was also given to the lighting, colors, and overall ambiance, resulting in a truly magnificent experience for all who came to enjoy gourmet dining. Since its opening, The Glass Slipper has developed and maintained a reputation as one of the "must visit" places in that region of New Mexico.
While James loves to ski and truly appreciates the mountains and all that they have to offer, he also shares Deena's dream of retiring to a tropical paradise and enjoying a more relaxed lifestyle on the beach. After some careful analysis of their financial condition, they knew that retirement was many years away. Nevertheless, they were hatching a plan to bring them closer to their dream. They decided to sell The Glass Slipper and open a bed and breakfast on a beautiful beach in
Mexico. While this would mean that work was still in their future, they could wake up in the morning to the sight of the palm trees blowing in the wind and the waves lapping at the shore. They also knew that hiring the right manager would allow James and Deena the time to begin a semi-retirement in a corner of paradise.
To make this happen, James and Deena would have to sell The Glass Slipper for the right price. The price of the business would be based on the value of the property and equipment as well as projections of future income.
A forecast of sales for the next two year is needed to help in the determination of the value of the restaurant. Monthly sales for each of the past 3 years are provided in Table.
A_ Which forecasting model is the most appropriate for future sales? Why? (2pts)
seasonal decomposition because in this case we provided with data set of three different years and the same month. All other models will not work.
B_ Write the proposed model after the analysis and interpret the slope. (2pts)
model is on next sheet
the slope is negetive which mean, the future income will decrease with the year.
C_ Apply the most appropriate forecasting model to these data to forecast sales for each month of the 2021 and 2022. (6pts)
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