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Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand for Fertilizer (1,000 bags) d) e) f) 4 6 4 5 10 8 7 9 12 14 15 a) b) The sales manager had predicted, before the business started, that year I's sales would be 410 air conditioners. Using exponential smoothing with a weight of develop forecasts for years 2 through 6. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of Cool-Man air conditioners. What effect did the smoothing constant have on the forecast for Cool-Man air conditioners? Which smoothing constant gives the most accurate forecast? c) Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners. Using the trend projection method, develop a forecasting model for the sales of Cool-Man air conditioners. Would you use exponential smoothing with a smoothing constant of 0.3, a 3-year moving average, or a trend to predict the sales of Cool-Man air conditioners?

Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand for Fertilizer (1,000 bags) d) e) f) 4 6 4 5 10 8 7 9 12 14 15 a) b) The sales manager had predicted, before the business started, that year I's sales would be 410 air conditioners. Using exponential smoothing with a weight of develop forecasts for years 2 through 6. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of Cool-Man air conditioners. What effect did the smoothing constant have on the forecast for Cool-Man air conditioners? Which smoothing constant gives the most accurate forecast? c) Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners. Using the trend projection method, develop a forecasting model for the sales of Cool-Man air conditioners. Would you use exponential smoothing with a smoothing constant of 0.3, a 3-year moving average, or a trend to predict the sales of Cool-Man air conditioners?

Practical Management Science
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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Subpart A  : Moving constant = 0.30

Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand for Fertilizer (1,000 bags) 4 6 4 5 10 8 7 9 12 14 15 a) b) The sales manager had predicted, before the business started, that year I's sales would be 410 air conditioners. Using exponential smoothing with a weight of develop forecasts for years 2 through 6. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of Cool-Man air conditioners. What effect did the smoothing constant have on the forecast for Cool-Man air conditioners? Which smoothing constant gives the most accurate forecast? c) d) f) Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners. e) Using the trend projection method, develop a forecasting model for the sales of Cool-Man air conditioners. Would you use exponential smoothing with a smoothing constant of 0.3, a 3-year moving average, or a trend to predict the sales of Cool-Man air conditioners?
Transcribed Image Text:Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year 1 2 3 4 5 6 7 8 9 10 11 Demand for Fertilizer (1,000 bags) 4 6 4 5 10 8 7 9 12 14 15 a) b) The sales manager had predicted, before the business started, that year I's sales would be 410 air conditioners. Using exponential smoothing with a weight of develop forecasts for years 2 through 6. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of Cool-Man air conditioners. What effect did the smoothing constant have on the forecast for Cool-Man air conditioners? Which smoothing constant gives the most accurate forecast? c) d) f) Use a three-year moving average forecasting model to forecast the sales of Cool-Man air conditioners. e) Using the trend projection method, develop a forecasting model for the sales of Cool-Man air conditioners. Would you use exponential smoothing with a smoothing constant of 0.3, a 3-year moving average, or a trend to predict the sales of Cool-Man air conditioners?
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