Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Toyota Motors observes from the sales data that sales of Hybrid G has been decreasing over the last year. As mentioned earlier, this is due

Toyota Motors observes from the sales data that sales of Hybrid G has been decreasing over the last year. As mentioned earlier, this is due to introduction of a new hybrid model by Honda at the beginning of 2017. Toyota Motors wants to incorporate this decreasing trend into its forecasts.

Use the data table presented in Question 1 and double (trend-adjusted) exponential smoothing method to forecast sales for months 2 to 7, assuming A1 = 1443 and T1 = - 30 and set =0.9 and =0.4.

Calculate the forecast errors for months 2 to 6, and then compute MAD and MAPE for those months for the double exponential smoothing forecast and compare them with those of simple exponential smoothing in Question 2(b). Based on your calculations, is simple or double exponential smoothing a better forecasting approach in this specific case?

The MAD of forecast errors for months 2 to 6 is ____.

The MAPE of forecast errors for months 2 to 6 is ____%.

Based on the calculations in Question 2 and this question, a better forecasting approach in this specific case is ____ method.

[Note: please input either "simple exponential smoothing" or "double exponential smoothing".]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Successful Project Management

Authors: Jack Gido, Jim Clements

4th Edition

9780324656152, 324656130, 978-0324656138

More Books

Students also viewed these General Management questions

Question

(i) Verify (3.44) and (3.46). (ii) Show (3.57).

Answered: 1 week ago