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Forecasting techniques for linear regression

Forecasting Techniques

Deliverable Length: 1000-1500 words Details: There is debate within the production planning management team as to which forecasting technique to use. The team members want to test to see which method would be more accurate. They have assigned the new planning director to assess which of the three main forecasting techniques would have been more accurate to predict sales.

Using the following sales data for the last 10 quarters, perform a linear regression, an 8-month moving average, and a 3-month moving average forecasting technique to see which is most accurate for the new product in quarter 11 if quarter 11 sales end up being 172,000 units.

Make sure to include the equation for the line in the linear regression calculation. Also submit a half of page explaining at least five factors that could affect forecast accuracy at Ross and Pugett.

Quarter Quarterly Demand
in 1000 units
1 121
2 132
3 159
4 160
5 141
6 166
7 189
8 199
9 170
10 190

Solution Summary

The solution examines forecasting techniques for linear regression.