Question: 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

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 = 0.6 to forecast the sales for the months April through December. Assume that the initial forecast for January was $3,200 $ 3,200 . Start error measurement in April.

C. 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?

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?

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

Please answer all WITHOUT using Excel and show all work. Thank you!

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