Monthly sales for a six month period are as follows: Month Sales Jan 18,000 Feb 22,000 Mar 16,000 Apr 18,000 May 20,000 June 24,000 Compute the sales forecast for July using the following approaches: (1) Four-month moving average; (2) Weighted three-month moving average using .50 for June, .30 for May and .20 for April; (3) Exponential smoothing with α (smoothing constant) equal to .40, assuming a February forecast of 18,000
Monthly sales for a six month period are as follows: Month Sales Jan 18,000 Feb 22,000 Mar 16,000 Apr 18,000 May 20,000 June 24,000 Compute the sales forecast for July using the following approaches: (1) Four-month moving average; (2) Weighted three-month moving average using .50 for June, .30 for May and .20 for April; (3) Exponential smoothing with α (smoothing constant) equal to .40, assuming a February forecast of 18,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 29P: The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building...
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Q5) Monthly sales for a six month period are as follows:
Month Sales
Jan 18,000
Feb 22,000
Mar 16,000
Apr 18,000
May 20,000
June 24,000
Compute the sales
(1) Four-month moving average;
(2) Weighted three-month moving average using .50 for June, .30 for May and .20 for April;
(3) Exponential smoothing with α (smoothing constant) equal to .40, assuming a February forecast of 18,000
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