Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand for Fertilizer (1,000 bags) d) e) f) 4 6 4 5 10 8 7 9 12 14 15 a) b) The sales manager had predicted, before the business started, that year I's sales would be 410 air conditioners. Using exponential smoothing with a weight of develop forecasts for years 2 through 6. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of Cool-Man air conditioners. What effect did the smoothing constant have on the forecast for Cool-Man air conditioners? Which smoothing constant gives the most accurate forecast? c) Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners. Using the trend projection method, develop a forecasting model for the sales of Cool-Man air conditioners. Would you use exponential smoothing with a smoothing constant of 0.3, a 3-year moving average, or a trend to predict the sales of Cool-Man air conditioners?

Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand for Fertilizer (1,000 bags) d) e) f) 4 6 4 5 10 8 7 9 12 14 15 a) b) The sales manager had predicted, before the business started, that year I's sales would be 410 air conditioners. Using exponential smoothing with a weight of develop forecasts for years 2 through 6. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of Cool-Man air conditioners. What effect did the smoothing constant have on the forecast for Cool-Man air conditioners? Which smoothing constant gives the most accurate forecast? c) Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners. Using the trend projection method, develop a forecasting model for the sales of Cool-Man air conditioners. Would you use exponential smoothing with a smoothing constant of 0.3, a 3-year moving average, or a trend to predict the sales of Cool-Man air conditioners?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 2P: The file P13_02.xlsx contains five years of monthly data on sales (number of units sold) for a...

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