# Simple Linear Regression for Forecasting Sales

Question

 Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 Sales 328 463 543 481 514 687 839 861 1145 Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sales 1071 1271 1288 1353 1591 1485 1625 1807 1713 Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sales 1920 2135 2053 2137 2383 2390 2540 2783 2900

1. Use the regression function in Excel to forecast sales for 1988 to 2015.
2. Use simple moving average (with k = 4) to forecast sales for 1992 to 2015.
3. Use Mean Absolute Percent Error (MAPE) to determine whether simple linear regression or simple moving average is more accurate in forecasting sales, making sure to clearly show the MAPE values for the two forecasts.
4. Plot the actual sales, and your forecasts in parts Q1 and Q2 above on a line graph.

Summary

This question belongs to statistics and discusses about simple linear regression.

Word count: NA

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