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United States, Inc., supplies milk to several independent grocers throughout Dade Country, Florida. Managers at United Dairies want to develop a forecast of the number
United States, Inc., supplies milk to several independent grocers throughout Dade Country, Florida. Managers at United Dairies want to develop a forecast of the number of half gallons of milk sold per week. Sales data for the past 12 weeks are:
Week | Sales | Week | Sales |
1 | 2750 | 7 | 3300 |
2 | 3100 | 8 | 3100 |
3 | 3250 | 9 | 2950 |
4 | 2800 | 10 | 3000 |
5 | 2900 | 11 | 3200 |
6 | 3050 | 12 | 3150 |
a.Construct a time series plot. What type of pattern exists in the data?
b.Use exponential smoothing with = 0.4 to develop a forecast of demand for week 13. What is the resulting MSE?
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