. The demand for all-terrain bicycles had been steadily increasing since 1989. In the following table are the sales per quarter of mountain bikes produced by Canyon and Cactus Cycles since the second quarter of 1989. (a) Plot the data and verify that the model for linear trend is acceptable. Draw a line through the plotted data and obtain a visual estimate of a and b. (b) Estimate the parameters of the model in preparation for double exponential smoothing. (c) Forecast sales for the third quarter of 1996 using these initial estimates. (d) Forecast sales for the fourth quarter of 1996 using alpha 0.3 and beta 0.25 if sales in the third quarter of 1996 were equal to 234. (e) Use linear regression to estimate the parameters and forecast the third quarter of 1996.

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4.29. The demand for all-terrain bicycles had been steadily increasing since 1989. In the following
table are the sales per quarter of mountain bikes produced by Canyon and Cactus Cycles since
the second quarter of 1989.
(a) Plot the data and verify that the model for linear trend is acceptable. Draw a line through the
plotted data and obtain a visual estimate of a and b.
(b) Estimate the parameters of the model in preparation for double exponential smoothing.
(c) Forecast sales for the third quarter of 1996 using these initial estimates.
(d) Forecast sales for the fourth quarter of 1996 using alpha 0.3 and beta = 0.25 if sales in
the third quarter of 1996 were equal to 234.
(e) Use linear regression to estimate the parameters and forecast the third quarter of 1996.
Transcribed Image Text:4.29. The demand for all-terrain bicycles had been steadily increasing since 1989. In the following table are the sales per quarter of mountain bikes produced by Canyon and Cactus Cycles since the second quarter of 1989. (a) Plot the data and verify that the model for linear trend is acceptable. Draw a line through the plotted data and obtain a visual estimate of a and b. (b) Estimate the parameters of the model in preparation for double exponential smoothing. (c) Forecast sales for the third quarter of 1996 using these initial estimates. (d) Forecast sales for the fourth quarter of 1996 using alpha 0.3 and beta = 0.25 if sales in the third quarter of 1996 were equal to 234. (e) Use linear regression to estimate the parameters and forecast the third quarter of 1996.
Observation
1
2
3
4
5
6
1
8
9
10
11
12
13
14
Year
1989
1990
1991
1992
Quarter
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
Demand
16
73
61
57
43
44
68
68
73
84
93
128
100
130
148
Observation
BARDGING
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Year Quarter Demand
1993
1
147
142
134
159
181
168
168
188
186
189
184
224
207
223
1994
1995
FORECASTING 133
1996
2
3
4
1
2
3
4
1
2
3
4
1
2
Transcribed Image Text:Observation 1 2 3 4 5 6 1 8 9 10 11 12 13 14 Year 1989 1990 1991 1992 Quarter 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Demand 16 73 61 57 43 44 68 68 73 84 93 128 100 130 148 Observation BARDGING 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Year Quarter Demand 1993 1 147 142 134 159 181 168 168 188 186 189 184 224 207 223 1994 1995 FORECASTING 133 1996 2 3 4 1 2 3 4 1 2 3 4 1 2
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