Apply exponential smoothing to sales revenues using $=0\mathrm{.}2$ to set up your computations

$($a$)$ Compute the MAD, MSE, and MAPE for the exponential smoothing forecasts. Format the MAD and MSE as Numbers with $0$ decimals and MAPE as a Percentage with $1$ decimal.

$($b$)$ Using Excel's Solver $($with the GRG Nonlinear engine$),$ determine the optimal weights to minimize the MSE.

$($c$)$ Using this technique, compute a forecast for sales in the next quarter. Format the forecast as currency with $0$ decimals.

Create a chart $($with markers$)$ showing quarterly sales and optimized exponential smoothing forecasts. $($There will be two lines: one for actual sales and one for the exponential smoothing values.$)$

$($a$)$ Use appropriate chart and axis titles with a legend on the right.

$($b$)$ Place the chart on a separate sheet using the Move Chart $($to a new sheet$)$ option in the Location group on the Design tab.

$($c$)$ Remove the gridlines and put a border around the plot area.

Create a scatter plot for sales versus advertising:

$($a$)$ Use appropriate chart and axis titles with no legend.

$($b$)$ Place the scatter plot on a separate sheet using the Move Chart $($to a new sheet$)$ option in the Location group on the Design tab.

$($c$)$ Display the regression line with equation and $R^2$ value on the chart using Excel options.

$($d$)$ Format the regression line as a solid line $($with no dashes or dots$).$

$($e$)$ Remove the gridlines and put a border around the plot area.

Run Excel's Regression tool $($on a new sheet$)$ to develop a simple linear regression model that can be used to predict sales based on advertising. $($You may delete the duplicate $95\%$ columns.$)$

On the Regression Summary Output sheet, write Excel formulas to calculate the expected sales for a quarter with advertising expenditures of $$32,000,$ and to compute an approximate $68\%$ prediction interval for your estimate based on the empirical rule. $($Do not use the TREND function.$)$ Format the results as Currency with $0$ decimals.

Fill in answers to the questions on the attached sheet.