Case 3: Forecasting with Time Series Analysis

Key Objective: Crusty Pizza Executives must forecast December sales for the 10 stores in worksheet "Time Series".

Use data in worksheet "Time Series". Plot the data for each store.

Develop a sales forecast for each of the 10 stores for the month of December, using:

a)A three month moving average

b)A 2- month weighted moving average, with weights of 0.7 on the most recent month and 0.3 on the older month.

c)Exponential smoothing with an alpha value of 0.25. Assume February forecast is January's actual.

d)Compute measures of forecast accuracy to recommend the best forecasting technique to use for the data.

e)Rank the 10 stores based on the forecasts you made with the technique that you determined (in the above step) to be the best forecasting method.

f)You may use word document for the body of report.