Zeus Computer Chips, Inc used to have major contracts to product the 386-and 486-type chips. The market had been declining during the past three years because of the Pentium-type chips, which it cannot produce, so Zeus has the unpleasant task of forecasting next year. The task is unpleasant because the firm has not been able to find replacement chips for its product lines. Here is demand over the past 12 quarters:

1. Complete a simple moving average for 2014.

2. Complete a Simple Linear Regression to forecast 2014

3. How different are the two forecasting models? Which one would you go with? Explain?

2011		2012		2013
I	4,800	I	3,500	I	3,200
II	3,500	II	2,700	II	2,100
III	4,300	III	3,500	III	2,700
IV	3,000	IV	2,400	IV	1,700