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
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...
Related questions
Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe88a819f-7694-4287-a626-38e388f53442%2F6aa86118-2b11-4b0a-b510-3aaaba7a67bc%2Foe65skj_processed.jpeg&w=3840&q=75)
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.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 8 steps with 11 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Business in Action](https://www.bartleby.com/isbn_cover_images/9780135198100/9780135198100_smallCoverImage.gif)
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
![Production and Operations Analysis, Seventh Editi…](https://www.bartleby.com/isbn_cover_images/9781478623069/9781478623069_smallCoverImage.gif)
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.