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Develop a seasonally adjusted linear forecast model

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Reference no: EM133049158

Question - The Northwoods Outdoor Company is a catalog sales operation that specializes in outdoor recreational clothing. Demand for its items is very seasonal, peaking during the Christmas season and during the spring. It has accumulated the following data for orders per season (quarter) during the past 5 years:

a. Develop a seasonally adjusted linear forecast model for these order data. Forecast demand for each quarter for year 6.

b. Develop a linear trend line forecast and forecast each of the quarters for year 6.

c. Which of the two approaches used in (a) and (b) appears to be the more accurate? Use MAD to verify your selection.

Reference no: EM133049158

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