& Problem 4.2b Question The plotted graph for actual demand shows Demand O A. cy

Question

& Problem 4.2b Question The plotted graph for actual demand shows Demand O A. cycles B. seasonality D. a trend c. randomness 12 Using the 3-year moving average, the following forecast for periods 4 through 12 has been developed 4 Year Forecast 6.7 Year Forecast 10.7 10.7 10.0 8.3 7.78.3 9.710.0 10 12 Using the point drawing tool, plot the forecasts for years 8 through 12 (based on the 3-year moving average in the table above) 4 Note: Carefully follow the instructions above and only draw the required objects

Explanation / Answer

The graph shows that there is a trend , cycle and seasonality.

There is an upward trend in the values

Cycles of high lows are repeating.

The cycle is repeating after every three periods. Therefore , there is a quarterly seasonality.

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