Answered: A convenience store recently started to…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter1: Functions

Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy

Problem 6EA

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Transcribed Image Text:A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing (let x = 0.4 with an initial forecast for week 1 of 604) methods to forecast demand for week 13. Compare these methods by using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how much? Period Sales 1 604 2 632 3 4 653 730 5 640 6 7 8 640 729 717 MAPE 3.97 % 9 11 10 718 730 671 (i) Obtain the trend projection with regression forecast. The forecast for week 13 is 745. (Enter your response rounded to the nearest whole number.) Specify the mean absolute deviation (MAD) and mean absolute percent error (MAPE). (Enter your responses rounded to two decimal places.) MAD 27.08 (ii) Obtain the exponential smoothing forecast. The forecast for week 13 is (Enter your response rounded to the nearest whole number.) 12 743

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