Storrs Cycles has just started selling the new Cyclone mountain
Storrs Cycles has just started selling the new Cyclone mountain bike, with monthly sales as shown in the table. First, co- owner Bob Day wants to forecast by exponential smoothing by initially setting February’s forecast equal to January’s sales with a 5 .1. Co- owner Sherry Snyder wants to use a three- period moving average.


a) Is there a strong linear trend in sales over time?
b) Fill in the table with what Bob and Sherry each forecast for May and the earlier months, as relevant.
c) Assume that May’s actual sales figure turns out to be 405. Complete the table’s columns and then calculate the mean absolute deviation for both Bob’s and Sherry’s methods.
d) Based on these calculations, which method seems moreaccurate?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help