The monthly sales for Otter Batteries, Inc., were as follows: Plot the monthly sales data. Forecast January sales of the next year using each of the following: Naive method. A-3month moving average. A 3-month weighted average using .2, .3, and.5, with the heaviest weights applied to the most recent months. Exponential smoothing using an alpha=.5 and a September forecast of 70. A trend projection.
The monthly sales for Otter Batteries, Inc., were as follows: Plot the monthly sales data. Forecast January sales of the next year using each of the following: Naive method. A-3month moving average. A 3-month weighted average using .2, .3, and.5, with the heaviest weights applied to the most recent months. Exponential smoothing using an alpha=.5 and a September forecast of 70. A trend projection.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section: Chapter Questions
Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...
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Step 1: Determine the given variables:
VIEWStep 2: Plot the monthly sales data
VIEWStep 3: Determine the forecast by naive method
VIEWStep 4: Determine the forecast by moving average method:
VIEWStep 5: Determine the forecast by weighted moving average method:
VIEWStep 6: Determine the forecast by Exponential smoothing method
VIEWStep 7: Determine the forecast by trend projection
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