Describe a situation where it would be appropriate to use fo

Describe a situation where it would be appropriate to use forecasting. Be sure to include all the necessary steps to develop the forecast and why you would use the forecast you chose. Please be thorough and provide enough detail to allow meaningful responses from your classmates.

Solution

Situation:

Alomega Food Stores is retail food provider with 27 stores in a midwestern state. The company engages in various kinds of advertising and, until recently, has never studied the effect its advertising dollars have on sales, although some data had been collected and stored for 3 years.

The executives at Alomega decided to begin tracking their advertising efforts along with the sales volumes for each month. their hope was that after several months the collected data could be examined to possibly reveal relationships that would help in determining future advertising expenditures.

the steps involved in developing the forecast are:

a) Data collection: about the volume of sales every month, advertisement published, telecasted etc..

b) analysing data: using appropriate statistical methods