SALES($1000s)MONTHSALES($1,000s)MONTH11January14August14February17September16March12October10April14November15May16December17June11January11July Sales of industrial vacuum cleaners at R. Lowenthal Supply Co. over the past 13 months are as follows: Using a moving average with three periods, determine the demand for vacuum cleaners for next February.Using a weighted moving average with three periods, determine the demand for vacuum cleaners for February. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively. For example, if you were forecasting the demand for February, November would have a weight of 1, December would have a weight of 2, and January would have a weight of 3.Use exponential smoothing with a constant of 0.2 to forecast the demand for vacuum cleansers for January to February.Evaluate the accuracy of each of these methods ( Compute the MAD and MSE))

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Answered: SALES($1000s) MONTH SALES($1,000s)…

8th Edition

ISBN:9781337798310

Author:Peterson, John.

Publisher:Peterson, John.

Chapter24: Percent Practical Applications

Section: Chapter Questions

Problem 41A

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Question

Sales of industrial vacuum cleaners at R. Lowenthal Supply Co. over the past 13 months are as follows:

Using a moving average with three periods, determine the demand for vacuum cleaners for next February.
Using a weighted moving average with three periods, determine the demand for vacuum cleaners for February. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively. For example, if you were forecasting the demand for February, November would have a weight of 1, December would have a weight of 2, and January would have a weight of 3.
Use exponential smoothing with a constant of 0.2 to forecast the demand for vacuum cleansers for January to February.
Evaluate the accuracy of each of these methods ( Compute the MAD and MSE))

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