Following table shows the weekly sales of digital cameras at electronic retail store:

Week	Number ofdigital camerasSold	Forecast using 3 period moving average	Error	Forecast using exponential smoothing (with =0.3)	Error
1	23
2	14
3	26
4	33
5	29
6	20
7
8

Answer the following questions based on the data given above.Show your calculations.

1. What is the expected sales for the 4th & 7th week based on 3 period moving average? (15 Points)

ANSWER:

1. What would have been the expected sales for the 5th week based on exponential smoothing with = 0.3? (15 Points)

ANSWER:

1. Which of the above two forecasting method is better based on MSE? Why? (20 Points)