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Ms. Winnie Lin's company sells computers. Monthly sales for a six-month period are as follows: MONTH SALES Jan 20,000 Feb 24,000 Mar 16,000 Apr
Ms. Winnie Lin's company sells computers. Monthly sales for a six-month period are as follows: MONTH SALES Jan 20,000 Feb 24,000 Mar 16,000 Apr 15,000 May Jun 17,000 28,000 Compute the sales forecast for July using the approaches given below. Do not round intermediate calculations. Round your answers to the nearest whole number. 1. a three-month moving average 19000 computers 2. a weighted three-month moving average using 0.70 for June, 0.20 for May, and 0.10 for April 24500 computers 3. a linear trend equation 3000 computers 4. exponential smoothing with a (smoothing constant) equal to 0.30, assuming a February forecast of 20,000 8400 computers Calculate the MAD for each of the four techniques in part b. Use only the last 3 months to compare the same number of months for all methods. Do not round intermediate calculations. Round your answers to the nearest whole number. MAD (three-month moving average): computers MAD (weighted three-month moving average): MAD (linear trend equation): MAD (exponential smoothing): Which is the best? Why? computers computers computers The weighted three-month moving average is better because it provides the lowest MAD.
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