red n Management of Bainona Manufacturing Company wishes to choose a statistical forecasting method for forecasting sales for the company. Total sales (in millions of dollars) for each month of last year are shown below: Period 1 2 3 4 5 6 7 8 9 10 11 12 Period 1 2 3 4 5 a) Calculate the Three-month moving-average forecast for periods 4 through 12. 6 7 8 July August September October November December Month January February March April Month January February March May June July April May June August Sales Forecast 180 181 185 187 190 192 182 Sales 180 181 185 187 190 192 182 183 184 190 200 206 183 September 184

Management of Bainona Manufacturing Company wishes to choose a statistical forecasting method for forecasting sales for the company. Total sales (in millions of dollars) for each month of last year are shown below: a) Calculate the Three- month moving-average forecast for periods 4 through 12 . b) Calculate the weighted moving average forecast for periods 4 through 12 using weights of 0.6,0.3, and 0.1 c) Calculate the exponentially smoothed forecast for periods 4 through 12, using a forecast for period 3 (March) of 170 and an alpha of 0.3 . d) Calculate the mean absolute deviation (MAD) and the Mean Squared Error (MSE) for each forecasting method e) Which forecasting method would you select