Suppose we have the following annual sales data for an automobile dealership: Year Sales Trend 2009 121 1 2010 187 2 2011 165 3 2012 134 4 2013 155 5 2014 167 6 2015 200 7 2016 206 8 2017 221 9 2018 231 10 We want to forecast sales...

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Suppose we have the following annual sales data for anautomobile dealership:
Year Sales Trend
2009 121 1
2010 187 2
2011 165 3
2012 134 4
2013 155 5
2014 167 6
2015 200 7
2016 206 8
2017 221 9
2018 231 10
We want to forecast sales for 2019 and 2020 using either asimple trend model or a quadratic trend model. Use a within sampleforecasting technique to determine the best model using the RMSEmeasure discussed in lecture. Once this model has been determined,provide actual forecasts for 2019 and 2020. Report the two RMSEvalues in your pdf or fax submission along with the actualforecasts. Submit your Excel file used to create these answers.

Answer & Explanation Solved by verified expert

3.8 Ratings (715 Votes)

ANSWERGiven thatThe linear trend model that we want to fitiswhere ttrend is theintercept is the slopeand is a random errorUsing Excel datadata See Answer

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Year	Sales	Trend
2009	121	1
2010	187	2
2011	165	3
2012	134	4
2013	155	5
2014	167	6
2015	200	7
2016	206	8
2017	221	9
2018	231	10