wi$1$ps$06$h$.$ch$05\mathrm{.}01$

Ms$.$ Winnie Lin's company sells computers. Monthly sales for a six$-$month period are as follows:

Jan $17,000$

Feb $15,000$

Mar $16,000$

Apr $15,000$

May $18,000$

June $28,000$

b$.$ Compute the sales forecast for July using the approaches given below. Do not round intermediate calculations. Round your answers to th

number.

$-$a three$-$month moving average

computers

$-$a weighted three$-$month moving average using $0\mathrm{.}40$ for June, $0\mathrm{.}40$ for May, and $0\mathrm{.}20$ for April

computers

$-$a linear trend equation

Computers

$-$exponential smoothing with a $($smoothing constant$)$ equal to $0\mathrm{.}40,$ assuming a February forecast of $17,000$

computers

c$.$ Calculate the MAD for each of the four techniques in part $b.$ Use only the last $3$ months to compare the same number of months for all

round intermediate calculations. Round your answers to the nearest whole number.

MAD $($three$-$month moving average$)$:

computers

MAD $($weighted three$-$month moving average$)$:

computers

MAD $($linear trend equation$)$:

computers

MAD $($exponential smoothing$)$:

computers

Which is the best? Why?

is better because it provides the

MAD.