Sales of the Crown Gems have been increasing over the past five years. The operations manager has estimated sales in 2017 to be 410 Crown Gems. Using exponential smoothing with a weight of α = 0.30, the forecasts for 2017 through 2022 were developed. The forecasts for 2017 through 2022 is: Year Forecast 2016 450 2017 450 2018 463.5 2019 479.85 2021 504.795 2022 528.5565 a. Advise Crown Gems of the benefits associated with this method of forecasting. b.Caution the manager on the limitations associated with your forecast.
Sales of the Crown Gems have been increasing over the past five years. The operations manager has estimated sales in 2017 to be 410 Crown Gems. Using exponential smoothing with a weight of α = 0.30, the forecasts for 2017 through 2022 were developed. The forecasts for 2017 through 2022 is: Year Forecast 2016 450 2017 450 2018 463.5 2019 479.85 2021 504.795 2022 528.5565 a. Advise Crown Gems of the benefits associated with this method of forecasting. b.Caution the manager on the limitations associated with your forecast.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 26P: The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel...
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- Sales of the Crown Gems have been increasing over the past five years. The operations manager has estimated sales in 2017 to be 410 Crown Gems. Using exponential smoothing with a weight of α = 0.30, the forecasts for 2017 through 2022 were developed.
The forecasts for 2017 through 2022 is:
Year | Forecast |
2016 | 450 |
2017 | 450 |
2018 | 463.5 |
2019 | 479.85 |
2021 | 504.795 |
2022 | 528.5565 |
a. Advise Crown Gems of the benefits associated with this method of
b.Caution the manager on the limitations associated with your forecast.
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