Question
After tallying the receipts for their first year of operation, the owners of the Taco Barn are encouraged. Sales of their artisanal tacos, made from
After tallying the receipts for their first year of operation, the owners of the Taco Barn are encouraged. Sales of their artisanal tacos, made from such exotic ingredients as ground beef, cheese, and beans, have been strong and seem to give hope to the coming year. Taco sales by month are shown in the table.
Month | Sales |
January | 474 |
February | 485 |
March | 501 |
April | 588 |
May | 579 |
June | 673 |
July | 594 |
August | 679 |
September | 608 |
October | 699 |
November | 732 |
December | 735 |
The manager is open to suggestions for forecasting models and decides to try both a linear trend model and an exponential smoothing model with an alpha of 0.8. Generate forecasts for the year using these techniques and then calculate forecast errors using MAD to determine which is the superior method in this scenario.
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