Question
The dollar value of monthly sales for Illini volleyball t-shirts with Vrankovics name and player number 6 at the Gameday Store on Gregory Drive is
The dollar value of monthly sales for Illini volleyball t-shirts with Vrankovic’s name and player number 6 at the Gameday Store on Gregory Drive is given below:
Month | Sales |
1 | 3470 |
2 | 3620 |
3 | 3280 |
4 | 3830 |
5 | 3180 |
6 | 3420 |
Please indicate the formula you use to show your work. Note that you are asked to generate forecasts for multiple months; however, you are only required to explain your logic once, i.e., for one of the months, to avoid unnecessary duplication.
Create forecasted values for sales using three-period moving averages, i.e., MA(3). (6 points)
Compute the mean absolute error (MAD) for the MA(3) forecast generated. (6 points)
Use alpha = 0.2 for exponential smoothing and calculate forecasted values for months 2-7. (8 points)
Step by Step Solution
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Step: 1
To generate forecasts using a threeperiod moving average MA3 we take the average of the sales for the current month and the two preceding months For e...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Niebels Methods, Standards and Work Design
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