The sales (in millions of dollars) for a 15-month period are as follows. Month 1 2...

 

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The sales (in millions of dollars) for a 15-month period are as follows. Month 1 2 3 4 5 6 7 8 Sales 390 565 395 450 490 560 420 565 Month Sales 9 10 11 12 13 14 15 470 1000 490 485 525 550 530 a. Compare a three-month moving average forecast with an exponential smoothing forecast. Use a = 0.2. Find MSE for both methods. b. Which provides the better forecasts based on MSE? c. Find the forecast for the next month using the best forecast method. The sales (in millions of dollars) for a 15-month period are as follows. Month 1 2 3 4 5 6 7 8 Sales 390 565 395 450 490 560 420 565 Month Sales 9 10 11 12 13 14 15 470 1000 490 485 525 550 530 a. Compare a three-month moving average forecast with an exponential smoothing forecast. Use a = 0.2. Find MSE for both methods. b. Which provides the better forecasts based on MSE? c. Find the forecast for the next month using the best forecast method.

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Question a Working formula b MSE of exponential smoothing average ... View the full answer