The Garden Avenue Seven sells tapes of its musical performances. The following data show sales for the past 18 months. The group’s manager wants an accurate method for forecasting future sales.

a. Use exponential smoothing, with α = 0.3, 0.4, and 0.5. Which value of α provides the best forecasts?
b. Use trend projection to provide a forecast. What is the value of MSE?
c. Which method of forecasting would you recommend to the manager?Why?

Transcribed Image Text:

Month Sales Month Sales Month 13 14 15 16 17 18 Sales 293 283 322 355 346 379 381 424 433 470 481 544 601 587 644 10 12