Following table shows the weekly sales of smart phones at electronic retail store:WeekNumber of smart phones SoldForecast using 3 period moving averageErrorForecast using exponential smoothing (with α =0.4)Error148 241 355 464 562 655 7 8 Answer the following questions based on the data given above. Show all your calculations. What is the expected sales for the 7th week based on 3 period moving average. What is the forecast for the 8th week using the same method if the actual sales for week 7 happens to be 70? What is the expected sales for the 7th week based on exponential smoothing with α = 0.3? Which of the above two forecasting method is better based on MSE? Explain why?

Forecasting is the process of predicting the future demand using previous or historic information.

What is the expected sales for the 7th week based on 3 period moving average. What is the forecast for the 8th week using the same method if the actual sales for week 7 happens to be 70? What is the expected sales for the 7th week based on exponential smoothing with α = 0.3? Which of the above two forecasting method is better based on MSE? Explain why?

What is the expected sales for the 7th week based on 3 period moving average. What is the forecast for the 8th week using the same method if the actual sales for week 7 happens to be 70? What is the expected sales for the 7th week based on exponential smoothing with α = 0.3? Which of the above two forecasting method is better based on MSE? Explain why?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 19P: The file P13_19.xlsx contains the weekly sales of a particular brand of paper towels at a...

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Under what conditions might a firm use multiple forecasting methods?
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Week	Number of smart phones Sold	Forecast using 3 period moving average	Error	Forecast using exponential smoothing (with α =0.4)	Error
1	48
2	41
3	55
4	64
5	62
6	55
7
8