Sales of Volkswagen\'s popular Beetle have 0.30 and a starting forecast of 415.0

Question

Sales of Volkswagen's popular Beetle have 0.30 and a starting forecast of 415.00, the following sales forecast has been grown steadily at auto dealerships in Nevada during the past 5 years (se table below) Using exponential smoothing with a smoothing constant (a)o Sales 455 510 520 Year Sales 415.00 27.00 51.90 smoothing constants of 0.60 and 0.90, develop forecasts for the sales of VW Beetles. Use MAD to determine which of the three smoothing constants (0.30,060, or 0.90) gives the most accurate forecast he MAD fr a forecast developed using exponential smoothing with alculate forecasted sales for years 2 and 3 using exponential 0.30 is 63.70 sales ound your response to two decima, places smoothing witha-o 60 and a starting frecast o 415.00 (rond your responses to two decimal places) Year Forecasted Sales 415.00

Explanation / Answer

Sales forecast for year 2 = F1 + alpha ( A1-F1)

= 415 + 0.6 x ( 455-415) = 439

Sales forecast for year 3

= 439+0.6 ( 510-439) = 481.6

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