Over one year, a company sold the following numbers of lawn mowers.MonthJanFebMarAprMayJunJulAugSepOctNovDecSales23822019524534538027022028012011085Compute the one-step-ahead 3-month and 6-month moving-average forecasts for July through December.Compute the MAD for the forecasts obtained in part (a). What effect does increasing N from 3 to 6 have on the forecasts?Use the arithmetic average of the first six months of data as a baseline to initialize the exponential smoothing. Compute the one-step-ahead exponential smoothing forecasts for July through December, assuming α = 0.20.Compare the accuracy of the forecasts obtained in part (c) with the one-step ahead six-month moving-average forecasts obtained in part (a).

Answered: Compute the one-step-ahead 3-month and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...

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Over one year, a company sold the following numbers of lawn mowers.

Month	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Sales	238	220	195	245	345	380	270	220	280	120	110	85

Compute the one-step-ahead 3-month and 6-month moving-average forecasts for July through December.
Compute the MAD for the forecasts obtained in part (a). What effect does increasing N from 3 to 6 have on the forecasts?
Use the arithmetic average of the first six months of data as a baseline to initialize the exponential smoothing. Compute the one-step-ahead exponential smoothing forecasts for July through December,
assuming α = 0.20.
Compare the accuracy of the forecasts obtained in part (c) with the one-step ahead six-month moving-average forecasts obtained in part (a).

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