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Please show how the outcome was arrived at? Problem Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past
Please show how the outcome was arrived at?
Problem
- Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past five years. The sales manager had predicted before the new model was introduced that first-year sales would be 410 VWs. Using exponential smoothing with a weight of = .30, develop forecasts for 2 years through year 6.
Year | Sales | Forecast |
1 | 450 | 410 |
2 | 495 | |
3 | 518 | |
4 | 563 | |
5 | 584 | |
6 | ? |
- Sales of hair dryers at the Walgreens stores in Youngstown, OJ over the past four months have been 100, 110, 120, and 130 units (with 130 being the most recent sales).
Develop a moving-average forecast for next month, using these two techniques:
- 4-month moving average
- Weighted 4-month moving average with the most recent month weighted 4, the preceding month 3, then 2 and the oldest month weighted 1.
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