Question
Ms. Winnie Lin's company sells computers. Monthly sales for a six-month period are as follows: MONTH SALES Jan 19,000, Feb 23,000, Mar 16,000, Apr 15,000,
Ms. Winnie Lin's company sells computers. Monthly sales for a six-month period are as follows: MONTH SALES Jan 19,000, Feb 23,000, Mar 16,000, Apr 15,000, May 18,000, Jun 24,000 b. Compute the sales forecast for July using the following approaches: (1) a three-month moving average (2) a weighted three-month moving average using 0.70 for June, 0.20 for May, and 0.10 for April (3) A linear trend equation (4) Exponential smoothing with (smoothing constant) equal to .40, assuming a February forecast of 19,000 c. Which method do you think is the least appropriate? Why? d. Calculate the MAD for each of the four techniques in part B. Which is the best? Why?
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