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Sales of PQR-Cool air conditioners have grown steadily during the past 5 years: The sales manager had predicted before the business started, that year 1's sales would be 410 air conditioners. YEAR 1 2 3 4 5 6 SALES 450 495 518 563 584 ? a) Using exponential smoothing with a weight of a=0.3, develop forecasts for years 2 through 6. b) Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of PQR-Cool air conditioners. c) What effect did the smoothing constant have on the forecast for PQR-Cool air conditioners? Refer to (a) and (b), which smoothing constant gives the more accurate forecast? d) Use a 3-year moving average forecasting model to forecast the sales of PQR-Cool air conditioners. e) Using the trend projection method, develop a forecasting model for the sales of PQR-Cool air conditioners. f) Referring to answer in (a), (d), and (e), which will be a better forecaster in predicting sales of PQR-Cool air conditioners? Justify your answer.

Sales of PQR-Cool air conditioners have grown steadily during the past 5 years: The sales manager had predicted before the business started, that year 1's sales would be 410 air conditioners. YEAR 1 2 3 4 5 6 SALES 450 495 518 563 584 ? a) Using exponential smoothing with a weight of a=0.3, develop forecasts for years 2 through 6. b) Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of PQR-Cool air conditioners. c) What effect did the smoothing constant have on the forecast for PQR-Cool air conditioners? Refer to (a) and (b), which smoothing constant gives the more accurate forecast? d) Use a 3-year moving average forecasting model to forecast the sales of PQR-Cool air conditioners. e) Using the trend projection method, develop a forecasting model for the sales of PQR-Cool air conditioners. f) Referring to answer in (a), (d), and (e), which will be a better forecaster in predicting sales of PQR-Cool air conditioners? Justify your answer.

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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Sales of PQR-Cool air conditioners have grown steadily during the past 5 years: The sales manager had predicted before the business started, that year 1's sales would be 410 air conditioners. YEAR 1 2 3 4 5 6 conditioners. SALES 450 495 518 563 584 ? a) Using exponential smoothing with a weight of a = 0.3, develop forecasts for years 2 through 6. b) Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of PQR-Cool air c) What effect did the smoothing constant have on the forecast for PQR-Cool air conditioners? Refer to (a) and (b), which smoothing constant gives the more accurate forecast? d) Use a 3-year moving average forecasting model to forecast the sales of PQR-Cool air conditioners. e) Using the trend projection method, develop a forecasting model for the sales of PQR-Cool air conditioners. f) Referring to answer in (a), (d), and (e), which will be a better forecaster in predicting sales of PQR-Cool air conditioners? Justify your answer.
Transcribed Image Text:Sales of PQR-Cool air conditioners have grown steadily during the past 5 years: The sales manager had predicted before the business started, that year 1's sales would be 410 air conditioners. YEAR 1 2 3 4 5 6 conditioners. SALES 450 495 518 563 584 ? a) Using exponential smoothing with a weight of a = 0.3, develop forecasts for years 2 through 6. b) Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of PQR-Cool air c) What effect did the smoothing constant have on the forecast for PQR-Cool air conditioners? Refer to (a) and (b), which smoothing constant gives the more accurate forecast? d) Use a 3-year moving average forecasting model to forecast the sales of PQR-Cool air conditioners. e) Using the trend projection method, develop a forecasting model for the sales of PQR-Cool air conditioners. f) Referring to answer in (a), (d), and (e), which will be a better forecaster in predicting sales of PQR-Cool air conditioners? Justify your answer.
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