A department store may find that in a 4-month period, the best  forecast is derived by using 40% of the actual sales (in units) for the most recent month, 30% of two months ago, 20% of three months ago, 10% of four months ago. The actual unit sales were as follows:

Month1    month2    month3     month4          month5

120            150               95               110                     ?

(i)What is the forecast for month 5?

(ii)Suppose sales for month 5 is 105, then the forecast for month 6 would be?

All your answers must show the calculations below and explanation.

Answer rating: 100% (QA)

i Forecast for month 5 40x Actual sales of month 4 30x actual sales for month 3 20 x a... View the full answer