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# Forecasting sales

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1. The owner of a computer store rents printers to some of her preferred customers. She is interested in arriving at a forecast of rentals so that she can order the correct quantities of supplies that go with the printers. The data is shown blow.

a. Prepare a forecast for weeks 4 - 10 by using the three week moving average. What is the forecast for week 11.
Week Rentals 1 25 2 28 3 30 4 26 5 27 6 22 7 26 8 24 9 20 10 23

2. A manufacturer of grinding tools is concerned about the durability of its products which depends on the permeability of the sinter mixtures used in production. Suspecting that carbon might be the problem, the plant manager collected the following data.
Carbon Content 5.5 3 4.5 4.8 4.2 4.7 5.1 4.4 3.6 10
Permeability Index 16 31 21 19 16 23 20 11 20 ????
a. Determine the Index for week 10. Draw a Scatter plot of the data. b. Is there a relationship between permeability and carbon content?

3. Management of a shampoo company introduced a new 13.5 ounce pack and used an existing machine with some modifications to fill it. To check the consistency, the following data was used.
a. Using the 5 day moving average, what will the data for the 21st day be? b. Using Linear Regression, what will the 21st day be?
Day Data 1 13.00
2 14.10
3 14.20
4 12.80
5 13.10
6 14.00
7 12.90
8 13.60
9 13.20
10 13.70
11 13.30
12 14.00
13 14.10
14 13.10
15 14.10
16 13.60
17 14.30
18 14.40
19 13.80
20 13.80

4. The marketing vice-president of Getsmart Computers, a regional computer distributor, wants to develop a quarterly sales forecast for the coming year (year 10). He obtained quarterly sales data. What recommendations would you make in order to prepare a forecast? Why did you choose the methodology?