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The 'Swansea Garden Centre', is interested in forecasting the sales of garden spades for the coming year. Based on the quarterly sales figures for the

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The 'Swansea Garden Centre', is interested in forecasting the sales of garden spades for the coming year. Based on the quarterly sales figures for the previous two years, the garden centre expects to sell around 405 spades in the coming year. The sales data exhibits a seasonal sales pattern. Table 4 below gives the last two years of sales data (Year 1 and Year 2). Table 4: Sales data for year 1 and year 2 (a) How much can the garden centre expect to sell during each quarter of next year (Year 3) accounting for seasonality? Your forecast must make use of seasonal indices. (NOTE:Please round your calculations to three decimal places). [19 marks] (b) Forecasting methods can be classified into two groups: qualitative and quantitative. Discuss the characteristics, strengths and weaknesses of both methods. [6 marks]

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