At Henry & Henry, Public Accountants, Franklin Henry, as managing partner, is responsible for forecasting demand for professional accounting services. He forecasts both aggregate demand and demand for each group specialty that Henry & Henry provides. His forecast for the estate planning group for the preceding six-month period (made six months before that) was 120 client days (1 client day = 8 billing hours) of work per month.
a. Plot the demand and forecast data on a time axis .
b. Calculate the MAD.
c. Suggest a forecasting model that Franklin might find appropriate for the next six-month period. Explain your choice.
d. Using your model, what are the forecasts for each of the next six months? Explain.