Charlie Owns A Company That Sells And Installs Hot Tubs Sales Are Fairly Consistent From Year To Year The Table Below 1 (55.7 KiB) Viewed 58 times
Charlie Owns A Company That Sells And Installs Hot Tubs Sales Are Fairly Consistent From Year To Year The Table Below 2 (55.7 KiB) Viewed 58 times
Charlie owns a company that sells and installs hot tubs; sales are fairly consistent from year to year. The table below shows average sales per month for the previous year. Month Average Sales per Month February 550 March 450 April 600 May 850 June 925 July 675 August 500 Based on last year's data, calculate the forecasts for average sales per month for May - August this year, using the different methods below. a) Determine the equation of the linear trend line based on the data from February - August last year, indicate the forecast for May-August this year. (10 points) b) Calculate the trend-adjusted exponential smoothing forecasts for May - August using an initial trend forecast (T1) for February of 50, and initial exponential smoothing forecast (S1) for February of 500; also, use an a of 0.35 and a ß of 0.50. (10 points) c) Calculate the Mean Squared Error (MSE) for the forecasts made in May - August by the two techniques above AND the three techniques calculated in Question 3 from Assignment #1. Based on MSE calculations, which forecasting method is preferred and why? Using the preferred technique forecast the average sales per month for the following 2 months (September and October). (10 points)
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