Question: Consider the sales data for Computer Success given in Problem 7 . a . Use a 3 - month weighted moving average to forecast the

Consider the sales data for Computer Success given in Problem 7.
a. Use a 3-month weighted moving average to forecast the sales for the months April through December. Use weights of (4/8),(3/8), and (1/8), giving more weight to more recent data.
b. Use exponential smoothing with =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.
c. Compare the performance of the two methods by using the mean absolute deviation as the performante criterion, with error measurement beginning in April. Which method would you recommend?
d. 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?
e. Compare the performance of the two methods by using the mean squared error as the performance criterion, with error measurement beginning in April. Which method would you recommend?
 Consider the sales data for Computer Success given in Problem 7.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!