Question 1

A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing (let alpha ()=0.4

with an initial forecast for week 1 of 571) methods to forecast demand for week 13. Compare these methods by using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how much?

(i) Obtain the trend projection with regression forecast. The forecast for week 13 is __. (Enter your response rounded to the nearest whole number.)

The data is in the picture.

Period 1 Sales 571 Observation 2 631 1 Please copy and paste data from text area below. Selected delimiter: Tab 3 5 6 7 4 749 643 609 723 639 2 3 4 5 6 Done 878 710 9 767 8 10 71 9 uch? lute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how Period 2 12 1 3 5 10 11 4 6 8 7 9 631 Sales 571 639 749 643 609 723 767 721 710 719 649