Question: Problem 1: Forecasting All analysis and calculations and report must be done in a single (ONE) Excel file. Put your name at the top of
Problem 1: Forecasting
- All analysis and calculations and report must be done in a single (ONE) Excel file.
- Put your name at the top of the worksheet.
- Make Excel do all of the calculations. (Instructor must be able to see your cell-reference formulas.)
- Include report/answers below the forecasting calculations.
- Make sure answers are clear, complete and easy to find.
- Your report must include:
- Presentation of forecasts
- Explanation of why you chose each of the methods
- Annual sales of product from XYZ corporation have been recorded as follows:
| Year | Sales (000 units) | Year | Sales (000 units) | |
| 1 | 220 | 8 | 360 | |
| 2 | 245 | 9 | 400 | |
| 3 | 280 | 10 | 380 | |
| 4 | 275 | 11 | 420 | |
| 5 | 300 | 12 | 450 | |
| 6 | 310 | 13 | 460 | |
| 7 | 350 | 14 | 475 |
Management is interested in implementing a new forecasting system and investigating the following forecasting methods as possibilities:
Simple moving average, Weighted moving average, Simple Exponential Smoothing, Regression.
- Choose two of these methods and calculate forecasts for Year 15
- If you use Exponential Smoothing, begin with the assumption the Forecast for Year 12 was 435 (choose your own alpha)
- Present your forecast results
- Explain why each of your chosen methods is appropriate for the data and time frame given
Attached are the templates being used:
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