Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Using exponential smoothing with a smoothing constant(α)of0.30and a starting forecast of420.00,the following sales forecast has been developed: YearSalesForecasted Sales1460420.002510432.003520455.40 Using smoothing constants of0.60and0.90,develop forecasts for the sales of VW Beetles. Use MAD to determine which of the three smoothing constants(0.30,0.60,or0.90)gives the most accurate forecast.The MAD for a forecast developed using exponential smoothing withα=0.30isnothingsales. (Round your response to two decimal places.)

a= 0.30 Year Sales Forecast error absolute ES a=0.30 error 1 460 420.00 40 40.00 2…

Answered: Sales of Volkswagen's popular Beetle…

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 Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below). Using exponential smoothing with a smoothing constant

(α)

0.30

and a starting forecast of

420.00,

the following sales forecast has been developed:

Year	Sales	Forecasted Sales
1	460	420.00
2	510	432.00
3	520	455.40

Using smoothing constants of

0.60

and

0.90,

develop forecasts for the sales of VW Beetles. Use MAD to determine which of the three smoothing constants

(0.30,

0.60,

0.90)

gives the most accurate forecast.

The MAD for a forecast developed using exponential smoothing with

α=0.30

nothing

sales. (Round your response to two decimal places.)

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