Question: this table shows the value of food and beverage sales...
This table shows the value of food and beverage sales ($1,000) for the first three years of operation. Perform an analysis of the sales data for the Vintage Restaurant. Prepare a report for Karen that summarizes your findings, forecasts, and recommendations. Include the following:
1. Using the dummy variable approach, forecast sales for January through December of the fourth year. How would you explain this model to Karen?
Assume that January sales for the fourth year turn out to be $295,000. What was your forecast error? If this error is large, Karen may be puzzled about the difference between your forecast and the actual sales value. What can you do to resolve her uncertainty about the forecasting procedure?