Following table shows the weekly sales of smart phones at electronic retail store:WeekNumber of smart phones SoldForecast using 3 period moving averageErrorForecast using exponential smoothing (with α =0.4)Error148 241 355 464 562 655 7 8 Answer the following questions based on the data given above. Show all your calculations. What is the expected sales for the 7th week based on 3 period moving average. What is the forecast for the 8th week using the same method if the actual sales for week 7 happens to be 70? What is the expected sales for the 7th week based on exponential smoothing with α = 0.3? Which of the above two forecasting method is better based on MSE? Explain why?

Forecasting is the process of predicting the future demand using previous or historic information.

Answered: What is the expected sales for the 7th…

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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Following table shows the weekly sales of smart phones at electronic retail store:

Week	Number of smart phones Sold	Forecast using 3 period moving average	Error	Forecast using exponential smoothing (with α =0.4)	Error
1	48
2	41
3	55
4	64
5	62
6	55
7
8

Answer the following questions based on the data given above. Show all your calculations.

What is the expected sales for the 7th week based on 3 period moving average. What is the forecast for the 8th week using the same method if the actual sales for week 7 happens to be 70?
What is the expected sales for the 7th week based on exponential smoothing with α = 0.3?
Which of the above two forecasting method is better based on MSE? Explain why?

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