National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Month Sales (000)Units Feb. 15 Mar. 23 Apr. 12 May. 25 Jun. 19 Jul. 28 Aug. 26 Forecast September sales volume using each of the following: (1) A linear trend equation

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Month Sales (000)Units Feb. 15 Mar. 23 Apr. 12 May. 25 Jun. 19 Jul. 28 Aug. 26 Forecast September sales volume using each of the following: (1) A linear trend equation

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 5P: Management of a home appliance store wants to understand the growth pattern of the monthly sales of...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

100%

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

Month	Sales (000)Units
Feb.	15
Mar.	23
Apr.	12
May.	25
Jun.	19
Jul.	28
Aug.	26

Forecast September sales volume using each of the following:

(1) A linear trend equation

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

Expert Solution

Step 1

Month	Sales (y)	t	t²	ty
Feb	15	1	1	15
Mar	23	2	4	46
April	12	3	9	36
May	25	4	16	100
June	19	5	25	95
July	28	6	36	168
Aug	26	7	49	182
Total	148	28	140	642

n = number of months given = 7

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