Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Using exponential smoothing with a smoothing constant (α) of 0.30 and a starting forecast of 420.00, the following sales forecast has been developed: Year Sales Forecasted Sales 1 460 420.00 2 510 432.00 3 520 455.40 Using smoothing constants of 0.60 and 0.90, develop forecasts for the sales of VW Beetles. Use MAD to determine which of the three smoothing constants (0.30, 0.60, or 0.90) gives the most accurate forecast. The MAD for a forecast developed using exponential smoothing with α=0.30 is nothing sales. (Round your response to two decimal places.)
Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Using exponential smoothing with a smoothing constant (α) of 0.30 and a starting forecast of 420.00, the following sales forecast has been developed: Year Sales Forecasted Sales 1 460 420.00 2 510 432.00 3 520 455.40 Using smoothing constants of 0.60 and 0.90, develop forecasts for the sales of VW Beetles. Use MAD to determine which of the three smoothing constants (0.30, 0.60, or 0.90) gives the most accurate forecast. The MAD for a forecast developed using exponential smoothing with α=0.30 is nothing sales. (Round your response to two decimal places.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....
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Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Using exponential smoothing with a smoothing constant
forecast of
(α)
of
0.30
and a starting 420.00,
the following sales forecast has been developed:|
Year
|
Sales
|
Forecasted Sales
|
|
1
|
460
|
420.00
|
|
2
|
510
|
432.00
|
|
3
|
520
|
455.40
|
Using smoothing constants of
0.60
and
0.90,
develop forecasts for the sales of VW Beetles. Use MAD to determine which of the three smoothing constants
(0.30,
0.60,
or
0.90)
gives the most accurate forecast.The MAD for a forecast developed using exponential smoothing with
α=0.30
is
nothing
sales. (Round your response to two decimal places.)Expert Solution
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