Daily sales volume for Nilgiris Convenience Store is shown in the following tabl
ID: 3644920 • Letter: D
Question
Daily sales volume for Nilgiris Convenience Store is shown in the following table:Day Sales
1 $622
2 $418
3 $608
4 $752
5 $588
6 $656
7 $689
8 $675
9 $706
10 $725
a) If the store wants to use exponential smoothing to forcast the sales volume, what is the optimal value of? that would minimize MAPE? What is the forcast for day 11 using this model?
b) If the store wants to use linear trend analysis to forcast the sales volume, what is the linear equation that best fits the data? What is the forcast for day 11 using this model?
c) Which of the methods analyzed here would you use? Explain your answer.
Explanation / Answer
The below moving averages are calculated to forecast the 11th day sales 1) two day moving average : = (725+706)/2 = $715.5 2)three day moving average:= (725+706+675)/3 = $702 3)four day moving average:= (725+706+675+689)/4 = $698.75
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