Burger Lover Restaurant forecasts weekly sales of cheeseburgers. Cheeseburger Sa

Question

Burger Lover Restaurant forecasts weekly sales of cheeseburgers. Cheeseburger Sales 357 342 366 322 353 Based on historical observations over the past five weeks, make a forecast for the next period smoothing with a 0.2, given a forecast of 327 cheesebur using the following methods: simple average, three-period moving average, and exponential gers for the fifth week. Round your answers to 2 decimal places, the tolerance is +1-0.01. Simple average: F6 3-Period moving average:Fo Exponential smoothing: Fo

Explanation / Answer

Answering the first three parts as per Chegg policy

Given that the forecast of the fifth week is 327 cheeseburgers and smoothing constant is 0.20

Simple Average (F6) = Sum of five-week sales / 5

= 1740/5 = 348 cheeseburgers

3-Period moving average (F6) = (sum of sales of week 3-5) / 3

= 1041 / 3 = 347 cheeseburgers

Exponential Smoothing method (F6)

= Forecast for week 5 + [Alpha x (Actual for week 5 – Forecast for week 5)]

= 327 + [0.20 x (353 – 327)]

= 332.20 cheeseburgers

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