Sales of Orange computer have grown steadily during the past 5 years: Year Sales
Question:
Sales of Orange computer have grown steadily during the past 5 years:
Year Sales
1 450
2 295
3 518
4 563
5 584
6 ?
The sales manager had predicted, before the business started, that year 1’s sales would be 410 computers. Required:
(A) Using exponential smoothing with a weight of alpha = 0.30, develop forecasts for years 2 through 6.
(B)Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of orange computers.
(C) Based on your answer in part (b), propose the most accurate forecast in smoothing constant.
(D) Critically evaluate the effect that the smoothing constant have on the forecast for orange computers. (4 marks)
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna