a. Using the following, forecast the sales for the months up to January the following year:- i. A simple three month moving average. ii. A three period weighted moving average using weights of 1, 2 and 3. Assign the highest weight to the most recent data. iii. Exponential Smoothing when α= .6 and the forecast for March is 350. iv. Determine which of the three forecasting technique is the most accurate using MAD.
a. Using the following, forecast the sales for the months up to January the following year:- i. A simple three month moving average. ii. A three period weighted moving average using weights of 1, 2 and 3. Assign the highest weight to the most recent data. iii. Exponential Smoothing when α= .6 and the forecast for March is 350. iv. Determine which of the three forecasting technique is the most accurate using MAD.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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a. Using the following, forecast the sales for the months up to January the following year:-
i. A simple three month moving average.
ii. A three period weighted moving average using weights of 1, 2 and 3. Assign the
highest weight to the most recent data.
iii. Exponential Smoothing when α= .6 and the forecast for March is 350.
iv. Determine which of the three
MAD.
Transcribed Image Text:Months
January
February
March
April
May
June
July
August
September
October
November
December
Sales
69
75
86
92
95
100
108
115
125
131
140
150
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