A counseling service records the number of calls to their hotline for the last year. Plot the data and determine which forecasting technique would be best among a moving average, weighted moving average, exponential smoothing, and trend line
Month Demand
January 111
February 127
March 146
April 159
May 165
June 165
July 178
August 182
September 191
October 208
November 223
December 228
What will be an ideal response?
Answer: The plot shows a strong upward trend, so the regression line approach would be the best choice to model the data. Any exponential smoothing or averaging technique would need to emphasize the most recent periods strongly or have a short memory to avoid huge errors. The trend projection equation is Demand = 109.742 + 9.822 ∗ Time.
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