The Toro Cutlery Company has collected monthly sales information below:

MONTH	SALES		MONTH	SALES		MONTH	SALES
January	17,000		May	102,000		September	29,000
February	14,000		June	32,000		October	91,000
March	36,000		July	85,000		November	80,000
April	105,000		August	40,000		December	93,000

The company is examining two forecasting methods, moving average and exponential smoothing for forecasting sales.

What will the forecast be for January the following year using a three-, four-, and five-month moving averages? Do not round intermediate calculations. 

Forecast (January, 3-month MA):

Forecast (January, 4-month MA):

Forecast (January, 5-month MA):

What will the forecast be for January the following year using exponential smoothing with ɑ = 0.6? Assume the forecast for February this year is 17,000. 

Answer rating: 100% (QA)

To calculate the moving average forecast we need to sum up the sales for the previous three four or ... View the full answer