Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it
A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing (let a=0.4 with an initial forecast for week 1 of 569) methods to forecast demand for week 13. Compare these methods by using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how much? Period 1 2 3 4 5 6 7 8 9 10 11 12 Sales 569 621 645 746 670 616 753 711 703 725 648 729 Observation 1 2 3 4 5 6 7 8 9 10 11 12 (i) Obtain the trend projection with regression forecast. The forecast for week 13 is ____ (Enter your response rounded to the nearest whole number.) what is the MAD and what is the MAPE (ii) Obtain the exponential smoothing forecast. The forecast for week 13 is _____ (whole number) what is the MAD and MAPE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started