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The manager of Gilley's Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor
The manager of Gilley's Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead; if the store orders too little, it loses business, and if it orders too much, the extra must be thrown away. The manager believes that a major determinant of ice cream sales is temperature (i.e., the hotter the weather, the more ice cream people buy). Using an almanac, the manager has determined the average daytime tem- perature for 10 weeks, selected at random, and from store records he has determined the ice cream consumption for the same 10 weeks. These data are summarized as follows: Average Temperature Ice Cream Sold Week (degrees) (gal.) 73 110 65 95 81 135 90 160 75 97 77 105 82 120 93 175 86 140 79 121The Northwoods Outdoor Company is a catalog sales operation that specializes in outdoor recre- ational clothing. Demand for its items is very seasonal, peaking during the Christmas season and during the spring. It has accumulated the following data for orders per season (quarter) during the past 5 years: Orders (1,000s)/Year Quarter 2 3 4 5 January-March 18.6 18.1 22.4 23.2 24.5 April-June 23.5 24.7 28.8 27.6 31.0 July-September 20.4 19.5 21.0 24.4 23.7 October-December 41.9 46.3 45.5 47.1 52.8
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