Question: Consider the sales data for computer success: Month-sales January-3000 July-6300 February-3400 Au…

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Jun 13, 2022

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Question: Consider the sales data for computer success: Month-sales January-3000 July-6300 February-3400 Au…

by | Jun 13, 2022 | Questions & Answers


Consider the sales data for computer success: Month-sales
January-3000 July-6300 February-3400 August- 7200 March-3700
September-6400 April-4100 October-4600 May- 4700 November-4200
June-5700 December-3900 a) Use a 3-month weighted moving average to
forecast the sales for the months April through December. Use
weights of (4/8), (3/8) and (1/8), giving more weight to more
recent data. b) Use exponential smoothing with a= 0.6 to forecast
the sales for the months April through December. Assume that the
initial forecast for January was 3,200$. Start error measurement in
April. c) Compare the performance of the two methods by using the
mean absolute deviation as the performance criterion, with error
measurement beggining in April. Which method would you recommend.
d) Compare the performance of the two methods by using the mean
absolute percent error as the performance criterion, with error
measurement beggining in April. Which method would you recommend.
e) Compare the performance of the two methods by using the mean
squared error as the performance criterion, with error measurement
beginning in April. Which method would you recommend.

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