Business Forecasting 6th Edition by Holton Wilson, Barry Keating, John Solutions

Exercise 1

Do you think that the general growth path of The Gap sales has followed a linear path over the period shown? As part of your answer, show a graph of the deseasonalized The Gap sales along with a linear trend line. What does this graph suggest to you about the results you might expect from using a linear trend as the basis of a forecast of The Gap sales for 2006?