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The following information has been collected on the sales of greeting cards for the past 6 weeks. Week Sales ($) 1 85 2 90 3
The following information has been collected on the sales of greeting cards for the past 6 weeks.
Week | Sales ($) |
1 | 85 |
2 | 90 |
3 | 95 |
4 | 110 |
5 | 105 |
6 | 115 |
A. Develop a linear trend equation that can be used to forecast sales of greeting cards(6 marks)
B. Use the linear trend equation developed in part A to forecast sales for week 7.(1 mark)
C. Forecast the sales for week 7 using a three periodweighted moving average with weights of 0.6 (week 6), 0.3 (week 5) and 0.1 (week 4).(2 marks)
D. Compare and explain why the results in parts B and C are different.(2 marks)
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