The Toro Cutlery Company has collected monthly sales information below:

      

The company is examining two forecasting methods, moving average and exponential smoothing for forecasting sales.

a. What will the forecast be for January the following year using a 3-, 4-, and 5-month moving average?

b. What will the forecast be for January the following year using exponential smoothing with a values of 0.5? Assume the forecast for February this year is 20,000.

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Sales Sales Month Month Month Sales 20,000 September October January February March May June 92.000 30.000 30,000 90,000 50,000 16,000 42,000 90,000 November July August 80,000 April December 100,000 90,000