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Consider the following set of time series sales data for a growing company over the past 8 months: Month Sales 1 15 13 3 18 4 22 20 23 7 22 21

Consider the following set of time series sales data for a growing company over the past 8 months: Month Sales 1 15 13 3 18 4 22 20 23 7 22 21

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. Construct a time series plot.  What type of pattern exists?                       
  2. Develop a forecast for the next month using the averaging method.    
  3. Develop a forecast for the next month using the naïve last-value method. 
### Time Series Sales Data: Analyzing the Trend Over 8 Months for a Growing Company Consider the following set of time series sales data for a growing company over the past 8 months: | **Month** | **Sales** | |-----------|-----------| | 1 | 15 | | 2 | 13 | | 3 | 18 | | 4 | 22 | | 5 | 20 | | 6 | 23 | | 7 | 22 | | 8 | 21 | **Explanation of the Data Table:** The table provides monthly sales data over an 8-month period. This data is essential for understanding the trend and growth patterns of the company's sales over the given timeframe. - **Month 1:** Sales are 15 units. - **Month 2:** Sales decrease slightly to 13 units. - **Month 3:** There is an increase in sales to 18 units. - **Month 4:** Sales further increase to 22 units. - **Month 5:** Sales slightly drop to 20 units. - **Month 6:** There is another peak in sales, reaching 23 units. - **Month 7:** Sales remain steady at 22 units. - **Month 8:** Sales slightly decline to 21 units. **Trend Analysis:** - **Overall Trend:** There is an overall upward trend in sales from Month 1 (15 units) to Month 8 (21 units). - **Monthly Fluctuation:** Despite some fluctuations, the general trend shows an increase in sales, reflecting growth. This data is crucial for the company to identify sales patterns, predict future trends, and make informed business decisions.
Transcribed Image Text:### Time Series Sales Data: Analyzing the Trend Over 8 Months for a Growing Company Consider the following set of time series sales data for a growing company over the past 8 months: | **Month** | **Sales** | |-----------|-----------| | 1 | 15 | | 2 | 13 | | 3 | 18 | | 4 | 22 | | 5 | 20 | | 6 | 23 | | 7 | 22 | | 8 | 21 | **Explanation of the Data Table:** The table provides monthly sales data over an 8-month period. This data is essential for understanding the trend and growth patterns of the company's sales over the given timeframe. - **Month 1:** Sales are 15 units. - **Month 2:** Sales decrease slightly to 13 units. - **Month 3:** There is an increase in sales to 18 units. - **Month 4:** Sales further increase to 22 units. - **Month 5:** Sales slightly drop to 20 units. - **Month 6:** There is another peak in sales, reaching 23 units. - **Month 7:** Sales remain steady at 22 units. - **Month 8:** Sales slightly decline to 21 units. **Trend Analysis:** - **Overall Trend:** There is an overall upward trend in sales from Month 1 (15 units) to Month 8 (21 units). - **Monthly Fluctuation:** Despite some fluctuations, the general trend shows an increase in sales, reflecting growth. This data is crucial for the company to identify sales patterns, predict future trends, and make informed business decisions.
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