Scenario:You are a consultant for the Diligent Consulting Group (DCG). You have completed the first assignment, developing and testing a forecasting method that uses Linear Regression (LR) techniques (Module 2 Case). However, the consulting manager at DCG wants to try a different forecasting method as well. Now you decide to try Single Exponential Smoothing (SES) to forecast sales.

Using this Excel template:Data chart for BUS520 SLP 2, do the following:

Calculate the MAPE for Year 2 Linear Regression forecast (use the first spreadsheet tab labeled "Year 2 Forecast - MAPE").

Calculate forecasted sales for Year 2 using SES (use the second spreadsheet tab labeled "SES - MAPE"). Use 0.15 and 0.90 alphas.

Compare the MAPE calculated for the LR forecast (#1 above) with the MAPEs calculated using SES.

Then write a report to your boss in which you discuss the results obtained above. Using calculated MAPE values, make a recommendation concerning which method appears to be more accurate for the Year 2 data: SES or Linear Regression.