Sales of microwaves have been going well for a local electronic store. Tese sale

Question

Sales of microwaves have been going well for a local electronic store. Tese sales for the past 16 weeks have been 17, 24, 25, 19, 20, 22, 21, 23, 19, 16, 17, 14, 23, 22, 19 and 26.

a. Use exponential smoothing constants of 0.3 and 0.8 to forecast the sales of microwaves. Assuming the forecast for week 1 is 17 microwaves. which smoothing constant gives a etter forecast? what is the MAD of the better model?

b. Forecast the sales for week 17 using the most accurate forecast model developed in part a.

Include the excel file or a screenshot if you can't upload it. Show every step.

week sales 1 17 2 24 3 25 4 19 5 20 6 22 7 21 8 23 9 19 10 16 11 17 12 14 13 23 14 22 15 19 16 26

Explanation / Answer

a. Forecasting for exponential smoothing for both given Smoothing constants and their respective forecast and MAD.

The requistie table is given below:

3.03

Here we can see MAD for alpha = 0.8 is less then alpha = 0.3

MAD for alpha = 0.8 => 3.03

b. Forecast for week 17 =  A16 + ( 1 -  ) F16

Here F16 is the forecast for month 16 and A16 is the actual value for month 16

= 0.8

so forecast for week 17 = 0.8 * 26 + 0.2 * 19.57 = 24.72

week sales Forecast = 0.3 Forecast = 0.8 MAD ( = 0.3) MAD ( = 0.8) 1 17 17.00 17.00 0.00 0.00 2 24 17.00 17.00 7.00 7.00 3 25 19.10 22.60 5.90 2.40 4 19 20.87 24.52 1.87 5.52 5 20 20.31 20.10 0.31 0.10 6 22 20.22 20.02 1.78 1.98 7 21 20.75 21.60 0.25 0.60 8 23 20.83 21.12 2.17 1.88 9 19 21.48 22.62 2.48 3.62 10 16 20.73 19.72 4.73 3.72 11 17 19.31 16.74 2.31 0.26 12 14 18.62 16.95 4.62 2.95 13 23 17.23 14.59 5.77 8.41 14 22 18.96 21.32 3.04 0.68 15 19 19.87 21.86 0.87 2.86 16 26 19.61 19.57 6.39 6.43 MAD 3.09

3.03

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.