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 |
- 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.
- 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.
- 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?
- 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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