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1.Over an 18-month period, sales have been found to have an underlying linear trend of y = 7.112 + 3.949x, where y is the number of items sold and x represents the month. Monthly deviations from trend have been calculated and month 19 is expected to be 1.12 times the trend value.
What is the forecast number of items to be sold in month 19?
A.91
B.92
C.93
D.94 (2 marks)
2.Based on the last 15 periods the underlying trend of sales is y = 345.12 - 1.35x. If the 16th period has a seasonal factor of -23.62, assuming an additive forecasting model, what is the forecast for that period, in whole units?
A.300
B.301
C.324
D.325