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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
- 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 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 |
- Using single exponential smoothing with = 0.2 and a September forecast =65, calculate a forecast for October.
- 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.
- Calculate a forecast for October using your regression formula.
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