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The monthly sales for Telco Batteries, Inc., were as follows: Month Sales January 24 February 25 March 19 April 17 May 16 June 20 July
- The monthly sales for Telco Batteries, Inc., were as follows:
Month | Sales |
January | 24 |
February | 25 |
March | 19 |
April | 17 |
May | 16 |
June | 20 |
July | 21 |
August | 22 |
September | 24 |
October | 24 |
November | 25 |
December | 27 |
a) Plot the monthly sales data.
b) Forecast January sales using each of the following:
i) Naive method.
ii) A three-month moving average.
iii) A six-month weighted average using 0.1, 0.1, 0.1, 0.2, 0.2, and 0.3, with the heaviest weights applied to the most recent months.
iv) Exponential smoothing using an a 5 0.3 and a September forecast of 18.
v) A trend projection.
c) With the data given, which method would allow you to forecast next March's sales?
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