Question: Use exponential smoothing with an alpha value of = 0.50 to obtain forecasted sales (F T ) for Jan 2015-Dec 2015 (i.e. months 85-96). Note
- Use exponential smoothing with an alpha value of = 0.50 to obtain forecasted sales (FT) for Jan 2015-Dec 2015 (i.e. months 85-96). Note that you will need the Actual Sales (AT) from Dec 2014 (i.e month 84) and a forecast from month 84 (use the Nave Method) to get the first exponential smoothing forecast. These values can be obtained from the data file provided. Insert your forecasted sales in the Exponential Smoothing Sales Forecast (FT) column in the Table 2 below. Next, calculate the forecast errors for Jan 2015-Dec 2015 (i.e. months 85-96). Insert your forecast error values in the Forecast Error (FET) column in Table below. For your submitted you can simply copy and paste the completed Table 2.
Table 2: 2015 Sales Data and Exponential Smoothing Forecast
| Year | Month | Month # (T) | Actual Sales (AT) | ||
| 2014 | Dec | 84 | 21,951 | ||
| 2015 | Jan | 85 | 12,287 | ||
| 2015 | Feb | 86 | 11,519 | ||
| 2015 | Mar | 87 | 12,767 | ||
| 2015 | Apr | 88 | 13,235 | ||
| 2015 | May | 89 | 13,643 | ||
| 2015 | Jun | 90 | 13,552 | ||
| 2015 | Jul | 91 | 13,349 | ||
| 2015 | Aug | 92 | 10,240 | ||
| 2015 | Sep | 93 | 14,781 | ||
| 2015 | Oct | 94 | 17,123 | ||
| 2015 | Nov | 95 | 20,396 | ||
| 2015 | Dec | 96 | 23,609 |
- Use the data obtained in Table 2 to calculate the Mean Absolute Percentage Error (MAPE) for 2015 when using the Exponential Smoothing method to forecast sales.
- Which method would you recommend for Napa Valley Winery to use to forecast their sales? Justify your answer.
CAN YOU HELP WITH #1-#3 Please!!!!
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