The Costello Music company has been in business for 5 years. During that time its sales of electric organs have grown from 12 units to 74 units per year. Fred Costello, the firm’s owner wants to forecast next year’s organ sales. The historical data follows: Year 1 2 3 4 5 Sales 12 28 34 50 74 a) What forecasting method do you recommend and why? b) Use your recommendation to obtain the forecast for Years 6 and 7.
The Costello Music company has been in business for 5 years. During that time its sales of electric organs have grown from 12 units to 74 units per year. Fred Costello, the firm’s owner wants to forecast next year’s organ sales. The historical data follows: Year 1 2 3 4 5 Sales 12 28 34 50 74 a) What forecasting method do you recommend and why? b) Use your recommendation to obtain the forecast for Years 6 and 7.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 29P: The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building...
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The Costello Music company has been in business for 5 years. During that time its sales of electric organs have grown from 12 units to 74 units per year. Fred Costello, the firm’s owner wants to forecast next year’s organ sales. The historical data follows:
Year |
1 |
2 |
3 |
4 |
5 |
Sales |
12 |
28 |
34 |
50 |
74 |
- a) What
forecasting method do you recommend and why? - b) Use your recommendation to obtain the forecast for Years 6 and 7.
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