a) Is there a strong linear trend in sales over time? b) Fill in the table with what Bob and Sherry each forecast fo May and the earlier months, as relevant. c) Assume that May's actual sales figure turns out to be 405 Complete the table's columns and then calculate the mear absolute deviation for both Bob’s and Sherry's methods. d) Based on these calculations, which method seems more accurate? Px
a) Is there a strong linear trend in sales over time? b) Fill in the table with what Bob and Sherry each forecast fo May and the earlier months, as relevant. c) Assume that May's actual sales figure turns out to be 405 Complete the table's columns and then calculate the mear absolute deviation for both Bob’s and Sherry's methods. d) Based on these calculations, which method seems more accurate? Px
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:4.33
Storrs Cycles has just started selling the new Cyclone
mountain bike, with monthly sales as shown in the table. First,
co-owner Bob Day wants to forecast by exponential smoothing
by initially setting February's forecast equal to January's sales
with a = .1. Co-owner Sherry Snyder wants to use a three-period
moving average.
%3D
BOB'S
ERROR
SHERRY'S
ERROR
SALES
BOB
SHERRY
JANUARY
400
FEBRUARY
380
400
MARCH
410
APRIL
375
MAY
a) Is there a strong linear trend in sales over time?
b) Fill in the table with what Bob and Sherry each forecast for
May and the earlier months, as relevant.
c) Assume that May's actual sales figure turns out to be 405.
Complete the table's columns and then calculate the mean
absolute deviation for both Bob's and Sherry's methods.
d) Based on these calculations, which method seems more
accurate? PX
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