Question
Sales for the past 8 months at Dalworth Company are given here. Month Jan Sales ($ Millions) 20 Feb 24 Mar 27 Apr 31
Sales for the past 8 months at Dalworth Company are given here. Month Jan Sales ($ Millions) 20 Feb 24 Mar 27 Apr 31 May 37 Jun 47 July August 53 62 a) Use a 3-month weighted moving average to forecast the sales for the months June, July, and August. Use weights of (10), (5), and (1), giving more weight to more recent data. b) Use exponential smoothing with a = 0.4 to forecast the sales for the months June, July, and August. Assume that the forecast for May was $39 million. c) Calculate the Mean Absolute Percent Error (MAPE) for each of the two forecasting methods: 3-month weighted moving average and exponential smoothing, for each month (June, July, and August). Based on these calculations, identify which method provided a more accurate forecast for each month. Be sure to show all error measurements.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started