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United Daires, Inc. supplies milk to several independent grocers throughout Dade county, Florida. Managers at United Dairies want to develop a forecast of the number of half-gallons of milk sold per week. Sales data for the part 10 weeks follow.
Week Sales
1 2750
2 3100
3 3250
4 2800
5 2900
6 3050
7 3300
8 3100
9 2950
10 3000
a. construct a time series plot.
b. Use exponential smoothing with alpha = .4 to develop a forecast of demand for week 11.
c. Calculate the MSE.
d. Use excel to fit a linear trend line through the data.
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