City Cycles, co-owned by Amit and Barbara, has just started selling the new Z-10
ID: 409182 • Letter: C
Question
City Cycles, co-owned by Amit and Barbara, has just started selling the new Z-10 mountain bike, with monthly sales as shwon in the table
Please show work without excel
Month
Jan
Feb
Mar
Apr
Sales
407
376
410
365
a. Based on the given monthly sales data, it can be said that there is ________ linear trend in sales over time.
Strong
Not strong
b. First, co-owner Amir wants to forecast by exponential smoothing by initially setting February’s forecast equal to January’s sales with a = 0.15. Using the forecasting method, Amir’s forecast for the month of May is ______.
Month
Sales
Forecast
Jan
407
_
Feb
376
407.00
Mar
410
402.35
Apr
365
403.50
May
_
Month
Jan
Feb
Mar
Apr
Sales
407
376
410
365
Explanation / Answer
a. based on the given numbers, the relation is not strong.
b. the difference in the month of April is= 403.5-365= 38.5
the estimated number for May is= 403.5+ (0.15*38.5)= 409.275