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To understand whether demand for a customer segment is changing over time, the company tracked historical demand for one of its products as follows: Using

  1. To understand whether demand for a customer segment is changing over time, the company tracked historical demand for one of its products as follows:
    1. Using a simple 4-month moving average, calculate a forecast for October.

Demand

Demand

April

60

July

60

May

55

August

80

June

75

September

75

  1. Using single exponential smoothing with = 0.2 and a September forecast =65, calculate a forecast for October.
  2. Using simple linear regression, calculate the trend line for the historical data. Let's say the x-axis is April = 1, May = 2, and so on, whereas the y-axis is demand.
  3. Calculate a forecast for October using your regression formula.

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