Question: Consider the sales data for Computer Success given below. Month Sales ($) Month Sales ($) January 3,000 July 6,300 February 3,400 August 7,200 March 3,700

Consider the sales data for Computer Success given below.

Month

Sales ($)

Month

Sales ($)

January

3,000

July

6,300

February

3,400

August

7,200

March

3,700

September

6,400

April

4,100

October

4,600

May

4,700

November

4,200

June

5,700

December

3,900

  1. Usea3-monthweightedmovingaveragetoforecastthesales for the months April through December. Use weights of (4/8), (3/8), and (1/8), giving more weight to more recent data.
  2. Use exponential smoothing with a = 0.6 to forecast the sales for the months April through December. Assume that the initial forecast for January was $3,200. Start error measurement in April.
  3. Compare the performance of the two methods by using the mean absolute deviation as the performance criterion, with error measurement beginning in April. Which method would you recommend?
  4. Compare the performance of the two methods by using the mean absolute percent error as the performance criterion, with error measurement beginning in April. Which method would you recommend?

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