Chapter $8-$ Forecasting

Use a three$-$month moving average to forecast the sales for the months May through

December.

Use a three$-$month moving weighted average to forecast the sales for the months May

through December. Use weights $(\frac{3}{6}),(\frac{2}{6}),$ and $(1/8),$ giving more weight to more

recent data.

Use exponential smoothing with an alpha of $0\mathrm{.}7$ to forecast the sales for the months of

May through December. Assume that the initial forecast for January was $$40,000.$ Start

error measurement in May.

Compare the performance of the three methods by using the following criterion and state

which method you would recommend based on your comparison.

CFE

MSE

$$ MAD

MAPE