The dollar value of monthly sales for Illini volleyball t-shirts with Vrankovic’s name and player number 6 at the Gameday Store on Gregory Drive is given below:

Month	Sales
1	3470
2	3620
3	3280
4	3830
5	3180
6	3420

Please indicate the formula you use to show your work. Note that you are asked to generate forecasts for multiple months; however, you are only required to explain your logic once, i.e., for one of the months, to avoid unnecessary duplication.

Create forecasted values for sales using three-period moving averages, i.e., MA(3). (6 points)

Compute the mean absolute error (MAD) for the MA(3) forecast generated. (6 points)

Use alpha = 0.2 for exponential smoothing and calculate forecasted values for months 2-7. (8 points)

Answer rating: 100% (QA)

To generate forecasts using a threeperiod moving average MA3 we take the average of the sales for the current month and the two preceding months For e... View the full answer