Practical Management Science, Loose-leaf Version
Practical Management Science, Loose-leaf Version
5th Edition
ISBN: 9781305631540
Author: WINSTON, Wayne L.; Albright, S. Christian
Publisher: Cengage Learning
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Chapter 14.7, Problem 24P
Summary Introduction

To determine: The forecast for October and November sales.

Introduction: Forecasting is a technique of predicting future events based on historical data and projecting them into the future with a mathematical model. Forecasting may be an intuitive or subjective prediction.

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Simple exponential smoothing with a 5 0.3 is being used to forecast sales of digital cameras at Lowland Appliance. Forecasts are made on a monthly basis. After August camera sales are observed, the forecast for September is 100 cameras. Suppose 120 cameras are sold in September. Use the basic equation for simple exponential smoothing to forecast October sales and November sales.
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