The following data are monthly sales of jeans at a local department store. The buyer would...

Transcribed Image Text:

The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July. Month Sales Nave Absolute 2-period forecast Error Moving Absolute Exponential Absolute Error smoothing Error average January 37 February 35 March 42 35 April 38 42 May 48 38 June 45 48 a. Forecast sales of jeans for March through June using the nave method, a two-period moving average, and exponential smoothing with an a=0.2. (Hint: Use nave to start the exponential smoothing process.) b. Compare the forecasts using MAD and decide which is best. c. Using your method of choice, make a forecast for the month of July. The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July. Month Sales Nave Absolute 2-period forecast Error Moving Absolute Exponential Absolute Error smoothing Error average January 37 February 35 March 42 35 April 38 42 May 48 38 June 45 48 a. Forecast sales of jeans for March through June using the nave method, a two-period moving average, and exponential smoothing with an a=0.2. (Hint: Use nave to start the exponential smoothing process.) b. Compare the forecasts using MAD and decide which is best. c. Using your method of choice, make a forecast for the month of July.