Favors Distribution Company Purchases Small Imported Trinkets in Bulk, Packages

Essay

Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells them to retail stores. They are conducting an inventory control study of all their items. The following data are for one such item, which is not seasonal.
a. Use trend projection to estimate the relationship between time and sales (state the equation).
b. Calculate forecasts for the first four months of the next year.
$$\begin{array} { | l | c | c | c | c | c | c | c | c | c | c | c | c | } \hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 \\\hline \text { Month } & \text { Jan } & \text { Feb } & \text { Mar } & \text { Apr } & \text { May } & \text { Jun } & \text { Jul } & \text { Aug } & \text { Sep } & \text { Oct } & \text { Nov } & \text { Dec } \\\hline \text { Sales } & 51 & 55 & 54 & 57 & 50 & 68 & 66 & 59 & 67 & 69 & 75 & 73 \\\hline\end{array}$$