a. Prepare a forecast of sales for each day, starting with F 1=85 and a= .2. b. Compute the MAD and the tracking signal for the data given above in each period. Use MADO = 0.

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A grocery store sells the following number
of frozen turkeys during the one-week
period prior to Thanksgiving:
Turkeys Sold
Monday 80
Tuesday 53
Wednesday 65
Thursday 43
Friday 85
Saturday 101
a. Prepare a forecast of sales for each day,
starting with F 1=85 and a= .2.
b. Compute the MAD and the tracking
signal for the data given above in each
period. Use MADO = 0.
c. Are the MAD and tracking signal within
tolerances?
d. Recompute parts a and b using a= .1,.3,
and .4. Which value of a provides the best
forecast?
Transcribed Image Text:A grocery store sells the following number of frozen turkeys during the one-week period prior to Thanksgiving: Turkeys Sold Monday 80 Tuesday 53 Wednesday 65 Thursday 43 Friday 85 Saturday 101 a. Prepare a forecast of sales for each day, starting with F 1=85 and a= .2. b. Compute the MAD and the tracking signal for the data given above in each period. Use MADO = 0. c. Are the MAD and tracking signal within tolerances? d. Recompute parts a and b using a= .1,.3, and .4. Which value of a provides the best forecast?
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