Question
You run Colgate and sell toothpaste. You are trying to forecast demand for 2022, and you have sales data for the past 5 years, in
You run Colgate and sell toothpaste. You are trying to forecast demand for 2022, and you have sales data for the past 5 years, in $M: 2017: 55 2018: 45 2019: 100 2020: 50 2021: 100 First, generate 4 forecasts using the following methods: naive, simple mean method, 3 period moving average, 2 period weighed moving average (with weights of 0.8 and 0.2 for the the most recent and second most recent period, respectively. Anthony is in marketing, and he's very worried about being understocked, so he picks his favorite 2022 forecast based on this worry. Bria, on the other-hand is really worried about big forecasting errors in either direction, and she picks her favorite 2022 forecast using her preferred metric. What is the absolute difference in Anthony's favorite forecast and Bria's favorite forecast? Round to the nearest $M.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started