Develop a forecast for the next month using a four-month moving average method.Use the Excel Functions SLOPE and INTERCEPT to write the linear regression prediction equation with Months as the independent variable and sales as the dependent variable.Use the prediction equation to estimate the number of sales in month 9. ### Time Series Sales Data for a Growing CompanyConsider 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 |This table represents the sales performance of a company over an eight-month period. Each row in the table provides the sales figures for a specific month. The first column, "Month," indicates the months from 1 to 8, and the second column, "Sales," shows the corresponding sales figures. For example, in Month 1, the sales were 15 units, whereas in Month 8, the sales reached 21 units.Understanding time series data like this is crucial for analyzing trends, forecasting future sales, and making informed business decisions. The fluctuation in sales over these months can be a focal point of analysis to understand the reasons behind increases or decreases during specific periods.

Answered: Consider the following set of time…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Develop a forecast for the next month using a four-month moving average method.
Use the Excel Functions SLOPE and INTERCEPT to write the linear regression prediction equation with Months as the independent variable and sales as the dependent variable.
Use the prediction equation to estimate the number of sales in month 9.

### Time Series Sales Data 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 |

This table represents the sales performance of a company over an eight-month period. Each row in the table provides the sales figures for a specific month. The first column, "Month," indicates the months from 1 to 8, and the second column, "Sales," shows the corresponding sales figures. For example, in Month 1, the sales were 15 units, whereas in Month 8, the sales reached 21 units.

Understanding time series data like this is crucial for analyzing trends, forecasting future sales, and making informed business decisions. The fluctuation in sales over these months can be a focal point of analysis to understand the reasons behind increases or decreases during specific periods.

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