Suppose You Were Forecasting Sales for a Firm That Exhibited

question 72

Multiple Choice

Suppose you were forecasting sales for a firm that exhibited a cyclical pattern within each week. How would you go about forecasting sales for this firm?

• A) You would need to compute day-of-the week indices centered on the seven days around each day of the week and use these indices to deseasonalize the historical observations
• B) Calculate the monthly average because it automatically deseasonalizes the historical observations.
• C) Ignore the seasonality.
• D) Compute the daily change as a percent of sales and calculate the geometric average.

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