(Solution) - Cannister Inc specializes in the manufacture of plastic contai -(2025 Original AI-Free Solution)

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Cannister, Inc. specializes in the manufacture of plastic containers. The data on the monthly sales of 10-ounce shampoo bottles for the past five years are as follows:

a. Using the multiplicative seasonal method, calculate the monthly seasonal indices.
b. Develop a simple linear regression equation to forecast annual sales. For this regression, the dependent variable, V is the demand in each year and the independent variable. X is the index for the year (i.e. X = 1 for year 1, X =2 for year 2. and so on until X 5 for year 5).
c. Forecast the annual sales for year 6 by using the regression model you developed in part (b).
d. Prepare the seasonal forecast for each month by using the monthly seasonal indices calculated in part(a).