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The weekly sales (in dollars) for a particular brand of ice cream for a chain of grocery stores located in Melbourne, Australia, follows. Week Sale

The weekly sales (in dollars) for a particular brand of ice cream for a chain of grocery stores located in Melbourne, Australia, follows.

Week

Sale ($)

1

200

2

325

3

121

4

630

5

500

  1. Use a four-week moving average to develop a forecast for week 6. (2 marks)

[Answer and show workings here]

  1. Use exponential smoothing with a smoothing constant of =0.7 to develop a forecast for week 6. (6 marks)

[Answer and show workings here]

  1. Which of the two methods do you prefer and why? (4 marks)

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