A pharmacist has been monitoring sales of a certain over-the-counter pain reliever. Daily sales dur- ing the last 15 days were Day: 1 2 3 4 6 7 8 Number sold: 36 38 42 44 48 49 50 49 52 Day: Number sold: 10 11 12 13 14 15 48 52 55 54 56 57 a. Which method would you suggest using to predict future sales-a linear trend equation or trend- adjusted exponential smoothing? Why? b. If you learn that on some days the store ran out of the specific pain reliever, would that knowl- edge cause you any concern? Explain. c. Assume that the data refer to demand rather than sales. Using trend-adjusted smoothing with an initial forecast of 50 for week 8, an initial trend estimate of 2, and a = B = .3, develop forecasts for days 9 through 16. What is the MSE for the eight forecasts for which there are actual data?
A pharmacist has been monitoring sales of a certain over-the-counter pain reliever. Daily sales during
the last 15 days were
Day: 1 2 3 4 5 6 7 8 9
Number sold: 36 38 42 44 48 49 50 49 52
Day: 10 11 12 13 14 15
Number sold: 48 52 55 54 56 57
a. Which method would you suggest using to predict future sales—a linear trend equation or trendadjusted
exponential smoothing? Why?
b. If you learn that on some days the store ran out of the specific pain reliever, would that knowledge
cause you any concern? Explain.
c. Assume that the data refer to demand rather than sales. Using trend-adjusted smoothing with an
initial forecast of 50 for week 8, an initial trend estimate of 2, and .3, develop forecasts
for days 9 through 16. What is the MSE for the eight forecasts for which there are actual data?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
