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The following data shows the value of food and beverage sales ($1,000s) for the first three years of operation of Vintage Restaurant on Captiva Island

  1. The following data shows the value of food and beverage sales ($1,000s) for the first three years of operation of Vintage Restaurant on Captiva Island near Fort Myers, Florida.
Month First Year Second Year Third Year
January 242 263 282
February 235 238 255
March 232 247 265
April 178 193 205
May 184 193 210
June 140 149 160
July 145 157 166
August 152 161 174
September 110 122 126
October 130 130 148
November 152 167 173
December 206 230 235

  1. Compute the seasonal indexes
  2. Which month has the largest change in the value of food and beverage sales?
  3. Use 3-mth moving average to forecast the value of food and beverage sales for January of the fourth year.
  4. Use exponential smoothing model to forecast the value of food and beverage sales for January of the fourth year. Assume a smoothing constant of 0.10.
  5. Use the trend projection model to forecast the value of food and beverage sales for January of the fourth year.
  6. Compare the three forecast methods you have used and recommend the forecast for Winter of 2022.
  7. Discuss the results of the trend projection model for this problem.

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